Stock index S&P 500 continue to move within the correction and the bullish channel. Moving averages indicate a short-term uptrend. Prices broke through the area between the signal lines downward, 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 4348. At the moment, we should expect an attempt to develop a decline and test the support level near the 4335 area. Where can we expect a rebound and continued growth in the S&P 500 quotes to the area above the level of 4445.
S&P 500 Forecast and Analysis July 16, 2021
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 boundary of the “Wedge” pattern. Cancellation of the option to raise the index quotes will be a fall and a breakdown of the area of 4305. This will indicate a breakdown of the support level and a continued fall in the S&P 500 index with a target below 4035. Expect an acceleration of the rise in stock index quotes with a breakdown of the resistance area and closing of quotations above the 4405 area, which will indicate a breakdown of the upper boundary of the “Wedge” model.
S&P 500 Forecast and Analysis July 16, 2021 suggests an attempt to test the support level near the 4335 area. Then, continued growth to the area above the 4445 level. 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 upside option will be a fall in the value of the index and a breakdown of the 4305 area. This will indicate a continued decline with a target below the 4035 area.
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