Stock index S&P 500 continue to move within the correction and the bullish channel. Moving averages indicate a short-term bullish trend. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the growth of the stock index in the market from the current levels. At the time of the publication of the forecast, the index is trading at 4659. At the moment, we should expect an attempt to develop a correction and test the support level near the 4585 area. Where can we expect an upward rebound and continued growth in the S&P 500 quotes to the area above the 4905 level.
S&P 500 Forecast and Analysis December 16, 2021
An additional signal in favor of raising the stock index quotes will be a test of the support line on the relative strength index (RSI), which has been broken upwards. The second signal will be a rebound from the lower border of the reversal pattern, the inverted “Head and Shoulders”, as we can see, the formation of the right “Shoulder” of this pattern is almost complete. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the area of 4405. This will indicate a breakdown of the support level and a continued fall in the S&P 500 index with a target below 4225. Expect an acceleration of the rise in stock index quotes with a breakdown of the resistance area and closing of quotations above the 4795 area, which will indicate a breakdown of the upper border of the “Head and Shoulders” pattern.
S&P 500 Forecast and Analysis December 16, 2021 suggests an attempt to test the support level near the 4585 area. Then, continued growth to the area above the 4905 level. A test of the trend line on the relative strength index (RSI) will be in favor of raising the S&P 500 quotes. Cancellation of the growth option will be a fall in the value of the index and a breakdown of the 4405 area. This will indicate a continued decline with a target below the 4225 area.
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