The US 30 cash index has witnessed a minor 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 found 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.
Should the price surpass its 50-period SMA currently at 35,885, the bulls might then target the 36,045 obstacle. Advancing higher, that could pave the way towards the 36,320 barrier before testing the all-time high at 36,560. Breaching this crucial resistance, the price would enter uncharted waters, possibly testing the 161.8% Fibonacci extension of the November 8 to November 23 downleg at 37,265.
On the flip side, if the bears gain control, initial support could be found at the critical area which encapsulates the 20- and 200-period SMA currently found at 35,740 and 35,685, respectively. Breaching this crucial point could turn the fortunes around for the index, sending its price to test the 35,530 level before the sellers shift their attention to the 35,235 obstacle.
In brief, the overall outlook for the index is positive. For that to change, the sellers would need to break below the 200-period SMA.
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