The US 100 index (Cash) took some fire in recent sessions, sliding from the record high of 15,182 before encountering some support near the 50-day moving average (MA) currently at 14,720 and subsequently rebounding a little. The decline in the market has been swift, but not enough to threaten the bigger uptrend.
Short-term oscillators detect negative momentum, reflecting the latest decline in the price. The RSI has dropped below 50 and is pointing lower, and while the MACD is still positive, it is falling below its red trigger line.
If the bears stay in control and manage to pierce below the 50-day MA, their next target will likely be the 14,450 zone, which halted the selloff last month. Deeper declines would raise questions about the longevity of the positive trend, turning the focus towards the 14,080 region next.
Now if buyers come back into play, the first battle would be getting back above the 14,860 level. If they succeed, they will then have to overcome the psychological number of 15,000 before gearing up for another test of the all-time peak of 15,182.
In short, the overall uptrend is intact despite the latest pullback. For that to change, the sellers would need to slice through 14,450 first.
