Stock index S&P 500 continue to move within the correction and the bullish channel. An ascending ”5-0” pattern, as well as a Wedge reversal pattern, is also forming here. Moving averages indicate a short-term bearish trend. Prices broke down the area between the signal lines, which indicates pressure from the sellers of the asset and a potential continuation of the fall 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 the level of 4679. At the moment, we should expect an attempt to develop a fall and test the support level near the 4635 area. Where can we expect a rebound upward and continued growth of the S&P 500 quotes to the area above the level of 4785.
S&P 500 Forecast and Analysis January 11, 2022
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). The second signal will be a rebound from the lower border of the bullish channel and the “5-0” upward pattern. Cancellation of the growth option for index quotes will be a fall and a breakdown of the area of 4575. This will indicate a breakdown of the support level and a continued fall in the S&P 500 index with a target below the level of 4405. Expect an acceleration of the rise in stock index quotes with a breakdown of the resistance area and closing of quotations above the 4745 area, which smears on the breakdown of the upper boundary of the “Wedge” reversal pattern.
S&P 500 Forecast and Analysis January 11, 2022 suggests an attempt to test the support level near the 4635 area. Then, continued growth to the area above the level of 4785. 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 4575 area. This will indicate a continued decline with a target below the 4405 area.
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