The US 30 stock index pushed back from its all-time highs at 36562 amid weakened positive momentum. However, the overall bullish outlook is still maintained as the price is trading well above its 50- and 200-day simple moving average (SMA).
The weakened positive momentum and the minor price depreciation are also supported by the short-term momentum indicators, as the RSI has decreased slightly over the past sessions, although it’s still above its 50 neutral mark, while the MACD is found above zero but below its red signal line.
If the price breaks above its all-time high at 36,562, the positive momentum of the index might be reinforced. Overcoming this level, the price would enter uncharted waters, possibly testing the 161.8% Fibonacci extension of the September 3 to October 1 downleg at 36,750 before targeting the 176.4% Fibonacci extension at 37,040.
On the flip side, should the price break below the 36000 support, the bears might then aim for the strong 35500 level. A further descending movement from this point could pave the way towards the congested region, which encapsulates the 50-day SMA currently at 35100, and the 35025 level. Breaching this obstacle could change the positive outlook of the index to neutral.
In brief, the overall outlook for the US 30 stock index is bullish, with a weakened positive momentum. However, this might change if the price breaks below the 50-day SMA, turning its outlook to neutral, while breaking above the November 8 all-time high could reinforce the pair’s positive momentum.
