Stock index S&P 500 continue to move within the fall and the beginning of the development of the Head and Shoulders reversal pattern. The moving averages indicate the presence of a short-term bullish trend. Prices have broken through the area between the signal lines downwards, which indicates pressure from asset sellers and a potential continuation of the fall of the stock index on the market from the current levels. At the time of publication of the forecast, the index is trading at 5505. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance level near the 5535 area. Where should we expect a downward rebound and a continuation of the fall of the SP500 quotes to the area below the 5235 level.
S&P 500 Forecast and Analysis for July 31, 2024
An additional signal in favor of a decrease in the stock index quotes on July 31, 2024 will be a test of the resistance line on the relative strength indicator RSI. The second signal will be a rebound from the lower border of the Head and Shoulders reversal pattern. The cancellation of the index quotes fall option will be a strong growth and a breakout of the 5595 area. This will indicate a breakout of the resistance level and continued growth of the SP500 index quotes with a target above the 5785 level. It is worth expecting an acceleration of the fall of the stock index quotes with a breakout of the support area and closing of quotes below the 5405 area.
S&P 500 Forecast and Analysis for July 31, 2024 suggests an attempt to test the resistance level near the 5535 area. Then, a continuation of the fall to the area below the 5235 level. A test of the trend line on the relative strength indicator will be in favor of a decrease in SP500 quotes. The cancellation of the fall option will be a strong growth in the index value and a breakout of the 5595 area. This will indicate a continuation of the rise with a target near the 5785 area.
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