US 500 Index Flirts With 200-Day SMA Below Record High

The US 500 (cash) index is approaching the 200-day simple moving average (SMA), posting couple of days of gains after the fall from the record high of 4,244.05. More advances could meet the aforementioned high before inserting into uncharted levels such as 4,300, 4,400 and 4,500.

The RSI is confirming the positive outlook as it is heading north, entering the bullish territory, however, the MACD is still moving lower, remaining below the trigger line. The Ichimoku cloud is suggesting more gains in the short-term timeframe.

In the negative scenario, a drop below the 50-day SMA could hit the 3,988 support ahead of the 3,858 level, which stands near the uptrend line. A penetration of this level could find immediate level at the 23.6% Fibonacci retracement level of the upward wave from 2,181 to 4,244.05 at 3,760. Steeper decreases could open the door for the 3,664-3,340 zone. To sum up, the index is looking strongly bullish in the short- and long-term window.

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