The US 30 (cash) index failed again to touch the one-year low of 32,200 and returned higher but the near-term bias is still bearish. The 40- and the 200-day simple moving averages (SMAs) posted a death cross, confirming the bearish outlook. The RSI indicator is flattening below the 50 level, while the %K and the %D lines are ticking higher after the bullish cross.
Further losses should see the latest low of 32,200 being tested before tumbling to the next support level of 30,530. If the bears continue to sell the index, the 30,000 round number may halt the negative movements.
In the event of an upside reversal, the 20-day SMA at 33,766 may act as strong resistance ahead of the 34,180 peak. Above these crucial levels the death cross around 35,058 could be the next target around the 35,140 hurdle.
All in all, the US 30 index has been in a negative tendency since January and only a successful climb above the SMAs may change this outlook.
