The iShares Core S&P 500 UCITS ETF traded higher yesterday, after hitting support at 406.25 on Wednesday. That said, the rebound stayed limited below the prior upside support line drawn from the low of March 4th, and thus, we would consider the near-term outlook to be cautiously negative for now.
In order to start examining further declines though, we would like to see a dip below Wednesday’s low of 406.25. This will confirm a forthcoming lower low and may initially pave the way towards the 399.50 zone, which acted as a strong resistance on March 16th and 17th. If the slide doesn’t stop there, the next territory to consider as a support may be at around 390.00, marked by the low of March 19th.
Our short-term oscillators detect negative momentum and support the case for another round of selling in this ETF. The RSI, already below 50, has turned down again, while the MACD lies below both its zero and trigger lines.
In order to consider the resumption of the prior uptrend, we would like to see a recovery above 416.90. This may also take the price back above the aforementioned upside line and could encourage investors to aim for another test at the all-time high of 424.41, reached on May 7th. Nonetheless, if they don’t want to stop there, a move higher would place the ETF into uncharted territory, seeking for new records.
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