Stock index S&P 500 continue to move within the correction and the bullish channel. An upward ”5-0” pattern is also forming here. Moving averages indicate a short-term bullish trend. Prices broke down the area between the signal lines, which indicates pressure from the sellers of the asset and the 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 4694. At the moment, we should expect an attempt to develop a fall and test the support level near the 4625 area. Where can we expect a rebound upward and continued growth of the S&P 500 quotes to the area above the level of 4795.
S&P 500 Forecast and Analysis January 7, 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 the 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 border of the downward correction channel.
S&P 500 Forecast and Analysis January 7, 2022 suggests an attempt to test the support level near the 4625 area. Then, continued growth to the area above the level of 4795. In favor of raising the S&P 500 quotes, a test of the trend line on the relative strength index (RSI) will come out. 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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