The U.S. 30 cash index witnessed a small pullback from its all-time high at 36,560 earlier this month. However, the overall outlook for the index remains bullish as the price is above its 200-period simple moving average (SMA).
The short-term momentum indicators reflect a positive bias for the index. The RSI is located above its 50-neutral mark, while the MACD is currently above its red signal line and it has recently crossed above zero.
If the price exceeds its 50-period SMA currently at 35,885, the bulls could then target the 36,045 obstacle. Moving higher, this could pave the way to the 36,320 barrier before testing the all-time high at 36,560. In violation of this decisive resistance, the price would enter unexplored waters, possibly testing the 161.8% Fibonacci retracement from November 8 to November 23 at 37 265.
On the other hand, if the bears gain control, initial support could be found at the critical area, which contains the 20- and 200-period SMA currently found at 35,740 and 35,685, respectively. Violating this turning point could turn the fortunes for the index, sending its price to test the 35,530 level before sellers shift their attention to the 35,235 hurdle.
In short, the overall outlook for the index is positive. For that to change, sellers would need to break below the 200-period SMA.