The US 30 stock index (cash) has been experiencing a minor pullback in the last few four-hour sessions since its long-term rally peaked at the all-time high of 36,950. Moreover, the price crossed below its 50-period simple moving average (SMA), reinforcing the index’s imminent bearish bias.
The recent retreat is likely to continue as the short-term oscillators confirm that sellers have gained the upper hand. The MACD is found below its red signal line in the negative region, while the RSI has flatlined well beneath its 50-neutral mark.
Should the selling pressure intensify further, immediate resistance could be encountered at the most recent low of 36,200. Piercing through this barrier, the price might dip towards 35,890 or lower to challenge the 35,430 hurdle. If the bears overcome these obstacles, the spotlight would turn to the 35,000 psychological mark.
Alternatively, if the bulls retake control, the 36,530 region could act as an initial resistance point for the price. Overcoming this barricade, the 36,690 obstacle could appear on the radar. Higher up, the price ascent might halt at the record high of 36,950, before it moves towards uncharted waters.
Overall, the US 30 stock index appears to have run out of steam after posting a new all-time high. However, a clear dive below 35,430 is needed to turn the medium-term outlook to negative.
Written by Admin
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