Markets

US 500 index remains in tight range below short-term SMAs

The US 500 cash index is looking more neutral as prices are consolidating within the 3,765 support and the 3,900 resistance. However, the upside momentum appears to be stronger as prices are attempting to climb above the 50- and the 100-day simple moving averages (SMAs) near the 3,900 barrier.

The upside bias is also supported by the RSI, which has been hovering near the 50-neutral level, while the MACD is surpassing its trigger line.

Should the pair manage to strengthen its positive momentum, the next resistance could come around the 200-day SMA at 3,990 ahead of the long-term descending trend line at 4,000. Above this level, the next target could be the 4,100-4,150 region.

On the flip side, if prices are unable to break higher, the risk would shift back to the downside, with the lower boundary of the neutral area at 3,765 comingĀ into focus as well as the 3,700 support. The next key level to watch lower down is 3,500.

Summarizing, the US 500 index is bearish in the long-term timeframe but in the very short-term the index needs some boost to break the SMAs to the upside.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).