• US 100 stock index forms bearish structure

• The market could balance selling forces above 17,800

The US 100 stock index (cash) seems to have formed a bearish double top pattern within a rising channel and around the peak area of 18,338.

The bears will have to successfully complete that negative pattern below the 17,800-17,914 neckline to visit the 50-day exponential moving average (EMA) and the 23.6% Fibonacci of 17,389. Slightly lower, the constraining ascending line from January 2023 might act as a safety net near 17,100, canceling an aggressive downfall towards the 38.2% Fibonacci mark of 16,752.

According to the technical signals, the bias is neutral to bearish as the RSI keeps moving sideways above its 50 neutral mark and the MACD loses steam below its red signal line along with the stochastic oscillator.

Nevertheless, as long as the price stays resilient above the 20-day EMA at 17,914, there is scope for a rebound to 18,338. An uptrend resumption above the latter could lift the index up to the resistance line from November at 18,822. The 19,000 round level and the 261.8% Fibonacci extension of the July-October 2023 downleg could be the next destination, while higher, the bulls could target the 19,500 number.

In summary, the uptrend in the US 100 stock index has started to show some cracks, though traders may not engage in selling activities unless the price tumbles below 17,800. Futures markets were pointing to a soft positive open on Wall Street at the time of writing.