- US 500 cash index holds above the Ichimoku cloud
- The bullish wave started from 5,090
- Stochastic turns higher
The US 500 cash index has been travelling near the all-time high of 5,673.39 over the last few sessions, successfully surpassing the Ichimoku cloud, the short-term simple moving averages (SMAs) and the long-term uptrend line.
In the event the price stays resilient above the 5,565 support, the bulls might push for a close above the record peak and create another higher high. The next level may come from the 161.8% Fibonacci extension level of the down leg from 5,673.39 to 5,090 around 6,000.
If downside pressures resume, the index may hit the upper boundary of the Ichimoku cloud at 5,565 and the long-term uptrend line. Marginally lower, the 50- and 20-day SMAs at 5,500 and 5,455 respectively, may act as strong support obstacles.
According to technical oscillators, the stochastic is pointing slightly up, while the RSI is holding above the 50 level with weak momentum.
Summarizing, the index is looking ready for another run higher, especially if there is a closing session above the previous record peak.
Source by: XM Global