Stock index S&P 500 continue to move as part of the growth and the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a short-term bearish trend. Prices have broken up the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the growth of the stock exchange index in the market already from the current levels. At the time of the publication of the forecast, the index is trading at 3734. At the moment, we should expect an attempt to develop a correction and test the support level near the 3705 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the 4005 level.
S&P 500 Forecast and Analysis February 3, 2021
An additional signal in favor of the growth of the stock index quotes will be a test of the rising support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ”Head and Shoulders” reversal pattern. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the area of 3625. This will indicate a breakdown of the support level and a continuation of the fall in the S&P 500 index with a target below 3545. Expect an acceleration in the growth of stock index quotes with a breakdown of the resistance area and closing of quotations above the 3855 area.
S&P 500 Forecast and Analysis February 3, 2021 suggests an attempt to test the support level near the 3705 area. Then, continued growth to the area above the level of 4005. In favor of reducing the S&P 500 quotes, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the upside option will be the fall in the value of the index and the breakdown of the 3625 area. This will indicate a continued decline with a target below the 3545 area.
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