One of the 3 major US stock market indices, US30, reached this week its highest for the year at 34 450 points. This is the top of the range the index is trading within since November 2022. The lower values of this range drop below 32 500 points. The 3 moving averages of the Alligator indicator are now flat and dont show a clear direction. Its important to note the current article looks at the weekly chart, which means the shorter time frames are strongly bullish.
This upward momentum was trigger mostly by lower CPI reading in the US and the decision of the Fed not to hike the rates at their last meeting. Those were highly positive events which attracted a lot of buyers. Since early June US30 rose with almost 1700 points! This was a massive jump and the current values are still lower than the ATH reached in early 2022. This same zone was already tested numerous times and as history teaches – the more a level gets tested, the more likely it becomes for the price break out of it.
However, the current range between 34 500 – 32 500 has been valid since November 2022. At the same time the oscillator indicators signal an overbought condition and the alligator indicator is flat on the weekly chart , which points to no clear direction. To see our anticipated price action in US30, please visit out Go Premium section.
