Stock index S&P 500 continue to move within the correction and the bullish channel. Moving averages indicate the presence of a short-term bullish trend. Prices have broken through the area between the signal lines down, 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 4657. At the moment, we should expect an attempt to develop growth and test the resistance level near the 4745 area. Where should we expect a rebound down and the S&P 500 quotes continue to fall to the area below the level of 4305.
S&P 500 Forecast and Analysis January 18, 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 ”Head and Shoulders” reversal pattern. Cancellation of the option of falling index quotes will be a strong growth and a breakdown of the 4835 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 5065. It is worth expecting an acceleration in the fall of the stock index quotes with a breakdown of the support area and closing quotes below the 4495 area.
S&P 500 Forecast and Analysis January 18, 2022 suggests an attempt to test the resistance level near the area of 4745. Then, the continuation of the fall to the area below the level of 4305. 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 4835 area. This will indicate a continued decline in order to raise the 5065 area.
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