- US 100 index slides below 20-day EMA, but remains supported
- Technical indicators reflect uncertainty among traders
The US 100 stock index has recently pulled from a record high of 21,230 to set a footing near the 23.6% Fibonacci retracement of its August-November uptrend at 20,288. Despite its retreat, the index seems well-supported and market sentiment is currently in a holding pattern.
The 20-day exponential moving average (EMA) has again resumed its resistance role, capping the index within a tight range, as seen earlier this month. With technical indicators offering unclear signals, traders are stuck in wait-and-see mode. The Relative Strength Index (RSI) sits around its 50 neutral level, signaling indecision, while the stochastic oscillator seems to be printing a potential bullish cross just around its 20 oversold level.
Given the current setup, the index is poised for a potential breakout in either direction. A rally above the 20-day EMA at 20,550 could pave the way toward the 20,880 barrier. Even higher, the bulls could attempt to chart a new record high near the resistance line at 21,345, while a step above 21,500, could challenge the 161.8% Fibonacci extension of the latest pullback at 21,800 or even touch the psychological bar of 22,000.
On the other hand, if the index falls below the support trendline from August at 20,335 and beneath its 50-day EMA, bearish momentum could pick up steam toward 19,880 and the 38.2% Fibonacci of 19,700. A deeper pullback could eventually bring the 50% Fibonacci level at 19,230 into play.
In short, the US 100 index is holding a neutral bias, waiting for a clear move above 20,550 or below 20,200 to gain fresh direction.Â
