The US 100 index (Money) has taken heavy hearth over the previous week, retreating very sharply after touching a document excessive of 13,904 in mid-February. The velocity of the drop has accelerated within the final couple of classes, however on the brilliant facet, the worth construction of upper highs and better lows has not been violated, preserving the broader uptrend in play.
The short-term oscillators mirror the newest correction. The RSI has crossed under the impartial 50 barrier and appears to be headed for 30, whereas the MACD has fallen under its crimson set off line and should flip detrimental quickly.
If the bears keep in management and handle to pierce under 12,750, considerations across the well being of the general uptrend would intensify severely. Whether it is violated, the image would flip extra impartial, probably opening the way in which for extra declines in direction of the 12,500 area. That is one other essential zone that acted as resistance again in August after which as assist in January.
If patrons retake the wheel, their first goal stands out as the crossroads of the 13,150 space and the 50-day easy shifting common (SMA). If that territory is reclaimed, the highlight would flip to the 20-day SMA at present at 13,495. This indicator was a assist fortress in latest months, and it’s at present in shut proximity to the earlier document excessive of 13,600. If the bulls energy above this zone too, the main target would shift to the all-time excessive of 13,904.
Summarizing, so long as the index holds above 12,750, the longer-term uptrend stays intact.
— to www.actionforex.com