Forex Trading For Beginners 2021: US 500 Rebounds After Sharp Sell-Off, Bullish Bias Arises

The US 500 stock index (cash) is trying to stage a full rebound after its short-term downtrend ceased at the 4,530 level in the four-hour chart. Although the index has already recouped half of its recent losses, its upside move is meeting some resistance near the 50-period simple moving average (SMA).
The index’s recent recovery is likely to resume as the momentum indicators reinforce the positive near-term picture. Specifically, the MACD histogram is found well above its red signal line in the negative area, while the RSI has flatlined above its 50-neutral mark.

Should the bullish momentum intensify further, immediate resistance could be encountered at the recent high of 4,652, which overlaps with the 50-period simple moving average (SMA). Overcoming this barrier, the price might ascend towards the 4,674 region. Conquering this barricade, buyers could send the price to challenge 4,713 or higher to test the 4,732 obstacle.

On the flipside, bearish actions could meet initial support at the recent low of 4,630. Piercing through this level, the price may decline towards the 4,600 psychological mark. If that barrier fails as well, the spotlight might turn to 4,585 before 4,530 appears on the radar.

Overall, the US 500 index is on recovery mode and only a profound dip beneath 4,530 would alter its short-term outlook back to negative.