The US 500 index has shown signs of a short-term recovery as it bounced off the 50-day SMA and the 5,720 support level. However, technical indicators like RSI and MACD are indicating weakening momentum.
Currently, the price is below the short-term uptrend line, with RSI below the neutral threshold of 50 and MACD trending south below its trigger line. If the index continues to decline, it could test the 5,673 barrier before reaching the long-term ascending trend line at 5,550. Further downside movement could lead to a test of the 200-day SMA at 5,420.
On the other hand, a break above the 5,800 resistance could push the market towards the 20-day SMA at 5,845 and the all-time high of 5,926. A move beyond that could see the index reaching the 6,000 psychological mark and the 161.8% Fibonacci extension level at 6,100.
In the long-term view, the US 500 index remains bullish, staying above the long-term rising trend line and the 200-day SMA. To confirm a near-term recovery, a break above the 5,800 resistance is crucial.
In conclusion, while the index is showing signs of a short-term recovery, traders should keep an eye on key resistance levels for further confirmation of an upward trend.
