US 500 Index Flies Near 6-month Peak; All-time High is Near

Technical analysis of Forex market

The US 500 index price skyrocketed to a fresh six-month high of 2918 on Thursday before it pared those gains later in the day.

The price is holding above the red Tenkan-sen line as well as above the ‘golden cross’ within the 50- and 200-simple moving averages (SMAs). Technically, the RSI indicator is pointing marginally up near the overbought territory. However, the MACD oscillator is developing with stable momentum over the last sessions, despite the strong upside rally in the price action, suggesting that a possible pullback may be on cards.

In case of further gains and a climb above the six-month peak, the next resistance would likely be faced around the all-time high of 2940. A successful surpass of this critical level would shift the long-term outlook back to strong bullish one, challenging a new record peak, which may come around the 3000 handle.

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On the other side, if the price loses steam and declines beneath 2860, it could find support at the 50-day SMA currently at 2818. Even lower, the index could hit the 2784 area before touching the 23.6% Fibonacci retracement level of the upleg from 2332 to 2918 near 2779.

In the long-term, the index is trying to switch the mode to strongly bullish one and this would happen if prices overcome the all-time high set in September 2018.

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