• US 100 index rebounds off 50-day SMA

• Stochastics create bullish cross

• RSI lacks direction for now

Since its deep fall to the 19,470 support, the US 100 (cash) index has been moving back and forth near the short-term uptrend line, creating a base around the 50-day simple moving average (SMA). The technical picture indicates that the rebound is likely to continue.

Looking at momentum indicators, the RSI is lacking direction, slightly below its neutral threshold of 50, suggesting that the market could keep consolidating in the near term. However, the stochastic oscillator posted a bullish crossover within its %K and %D lines in the oversold region, confirming the recent pullback.

In the wake of negative pressures, the market could find support at the 19,470 barrier before heading lower to the 18,950 level, which is near the long-term ascending trend line.

On the flip side, a move to the upside could see immediate resistance at the 20,120 bar, but should the market increase positive momentum above this area, the all-time peak of 20,775 could be the next level in focus.

Turning to the broader picture, the market appears to be in bullish mode, given that the index is trading above the short- and long-term rising trend lines.