The latest upleg enjoyed the support of the momentum indicators but the picture is more mixed now. The Average Directional Movement Index (ADX) is moving sideways, potentially signalling a change in the recent bullish trend. This means that the US 100 index could consolidate at current levels or a new bearish trend could take hold soon.

The stochastic oscillator is close to confirming this trend change. It is hovering inside its overbought area (OB) but it has just broken below its moving average (MA). A further move below the OB territory would act as confirmation of a bearish breakout.

Should the bears feel encouraged by these signals, they would try to clear the busy 13,600-13,721 range. The next support would then come at the 13,098-13,206 area set by the August 26, 2022 high and the 50-day simple moving average (SMA). Even lower, the busy 12,858-12,888 area defined by the 38.2% Fibonacci retracement level of the November 22, 2021 – October 13, 2022 downtrend, the September 13, 2022 high and the 50-day simple moving average (SMA) could prove tougher to crack.

On the other hand, if the bulls remain committed to making higher highs, they would try to push the US 100 index above the 13,600-13,721 area. This is populated by the August 16, 2022 high and the 50% Fibonacci retracement. Even higher, the April 29, 2021 high of 14,075 looks critical from a long-term perspective.