Stock index S&P 500 continue to move within the correction and the downward channel. The potential remains to complete the formation of the “Triangle” pattern. Moving averages indicate the presence of a short-term bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from sellers of the asset and a potential continuation of the fall of the stock index on the market already from current levels. At the time of the publication of the forecast, the index is trading at the level of 4415. At the moment, we should expect an attempt to develop growth and test the resistance level near the 4435 area. Where should we expect a rebound down and the S&P 500 quotes continue to fall to the area below the level of 4035.
S&P 500 Forecast and Analysis February 1, 2022
An additional signal in favor of a decrease in stock index quotes will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option to fall in the index quotes will be a strong growth and a breakdown of the 4545 area. This will indicate a breakdown of the resistance level and a continued rise in the S&P 500 index quotes with a target above the level of 4755. Expect an acceleration in the fall of the stock index quotes with a breakdown of the support area and closing quotes below the 4215 area, which will indicate a breakdown of the lower boundary of the “Triangle” model.
S&P 500 Forecast and Analysis February 1, 2022 suggests an attempt to test the resistance level near the area of 4435. Then, the continuation of the fall to the area below the level of 4035. In favor of the decline in S&P 500 quotes, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the fall option will be a strong increase in the value of the index and a breakdown of the 4545 area. This will indicate a continued decline in order to raise the 4755 area.
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