The Direction of the US 100 Cash Index

The Direction of the US 100 Cash Index

The US 100 cash index is currently in the red, trading slightly below the 100-day simple moving average. Despite recent positive earnings, market sentiment remains bearish as investors await key US data releases. Momentum indicators are mostly bearish, with the Average Directional Movement Index (ADX) pointing towards a bearish trend and the Relative Strength Index (RSI) below its midpoint. The stochastic oscillator is attempting to break above its moving average and oversold territory, which could signal a further downturn in the index.

If bearish momentum continues, the US 100 index could potentially break below the 16,767-17,007 range, which represents previous highs from December 28, 2023, and November 22, 2021. Further downside targets include the 15,708-16,050 area, contingent upon breaching the key 200-day simple moving average at 16,333. Bears are preparing for a new downleg, with the possibility of a lower low and a more prolonged correction if US data remains strong.

On the other hand, bulls are attempting to regain control and push the US 100 index above the crucial 17,443-17,797 range, marked by the January 24, 2024 high and the 100-day simple moving average. If successful, they could test the resistance at 17,937-18,041 and potentially reach a new all-time high. However, this would require overcoming significant obstacles along the way.

The US 100 cash index is at a critical juncture, with both bears and bulls vying for control. The outcome will depend heavily on upcoming US data releases and market sentiment. While bears are currently in a position of strength, bulls are not backing down and are ready to challenge the prevailing negative momentum. Investors should closely monitor key levels and indicators to gauge the future direction of the US 100 index.

Technical Analysis

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