The US 100 cash index is currently experiencing a downward trend, trading slightly below the 100-day SMA. Market sentiment remains bearish as investors await key US data releases. This negative sentiment is reflected in various momentum indicators, suggesting a bearish trend in the market.
The Average Directional Movement Index (ADX) indicates a decent bearish trend in place, while the Relative Strength Index (RSI) is comfortably below its midpoint. The stochastic oscillator is attempting to break above both its moving average and oversold territory, which could signal a further downward movement in the US 100 index.
If the bears maintain control, they may push the index below the 16,767-17,007 range, which is supported by previous highs from December 28, 2023, and November 22, 2021. Further downside could test the 15,708-16,050 area, contingent on breaking the key 200-day SMA at 16,333.
On the other hand, bulls are looking to regain control and push the index above the crucial 17,443-17,797 range, marked by the January 24, 2024 high and the 100-day SMA. A successful breakthrough could lead to testing the resistance at 17,937-18,041, potentially reaching the recent all-time high.
The US 100 index is currently facing downward pressure, with bears preparing for a new downward movement. The outcome of upcoming US data releases will play a crucial role in determining the index’s direction. If the bears maintain control, a lower low is expected, setting the stage for a prolonged correction in the market. However, if bulls manage to take charge, a potential retest of the recent all-time high is possible. Investors should closely monitor key support and resistance levels to assess the market’s future movements.