S&P 500 index (US 500) eases after it hit fresh 6-month high.
The S&P 500 stock index is edging slightly lower after finding strong resistance at the fresh six-month high of 2885 that it completed on Wednesday. The price retains bullish action as it holds above the 50- and 200-day simple moving averages (SMA) which posted a ‘golden cross’ in the preceding sessions.
Looking at momentum oscillators in the daily chart though, they suggest negative movements may be on the cards. The RSI is above its neutral 50
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.
On the other side, if the price loses momentum and declines beneath 2860, it could find support at the 2784 area before touching the ‘golden cross’ near the 23.6% Fibonacci retracement level of the up leg from 2332 to 2885, near 2755. Dropping below this zone could take price towards the 2723 region, registered on March 8.
In the long-term, the index is trying to switch the neutral mode to a more bullish one and this would happen if prices overcome the all-time high set in September 2018.
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