The S&P 500 stock index (US 500) has finally breached its previous all-time high of 3,027 that kept bullish pressure under control over the past 3 months, stretching its December uptrend towards a new top of 3,056.

Although the RSI is slowing down, it remains well above its 50 neutral level, and with the MACD strengthening its positive momentum, it seems that the bulls may not easily give up the game in the short-term.

Key resistance to upside corrections could be identified near the upward trendline that connects the peaks from May to July, currently seen around 3,110. Moving above that line, the 3,200 level could be of psychological importance.

Should the bearish action gear up, the area around 3,000 could try to curb downside movements ahead of the 2,960 level. A decisive break below the latter could send the index towards the 200-day simple moving average (SMA) and the lower support line currently seen around 2,890, while a close below the August low of 2,777 would put the market’s uptrend back in doubt, downgrading the three-month outlook to bearish as well.

In brief, the US 500 stock is currently holding a positive profile in the short and medium-term timeframe, with the next target probably set around 3,110. 


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Source: XM