The US 500 stock index (Money) conveys a slight increase of positive momentum, after its latest collection of the 4,060 low raised the price above the 4,151 barrier. The latter incidentally is the 23.6% Fibonacci retracement of the upper leg from 3,853 to 4,244, and the current vicinity of the advancing 200-period simple moving average (SMA). The marginal growth in the mid-Bollinger band and the flattening of the bearish 50-period SMA together signify that a positive sentiment is beginning to gain an advantage that could help the index’s newly formed foothold around the above-mentioned levels.
Furthermore, the short-term oscillators support a growing positive momentum. The MACD is starting to rise above its red trigger line, which is not too much above the zero threshold, while the RSI is heading towards its previous high in the bullish territory. Moreover, the positively charged stochastic oscillator promotes an upward price extension in the index.
However further price gains could remain limited if buyers fail to conquer the near limit zone of 4,183-4,198. However, triumphing over this robust resistance obstacle and the adjacent upper Bollinger band, buyers could target the historic high of 4,244, encapsulated between the 4,239 and 4,250 obstacles respectively. From here, navigating into unmapped territory, the 4,300 mark could become the next target of buyers.
If sellers reappear, they face an immediate support zone from the 100-period SMA at 4,162 to the 23.6% Fibo of 4,151. However, declining below this, the price could reach the 50-period SMA at 4,136, although even lower, the 38.2% Fibo of 4,094 could focus. If sellers were to slip below the lower Bollinger band at 4.076, the region below between the troughs of 4.060 and 4.034 could provide unfavorable defenses to prevent negative trends from gaining momentum.
In summary, the neutral-to-bullish attitude in the index appears to be maturing. However, price retreat below the SMAs would begin to change this outlook.