Stock index S&P 500 continue to move within the framework of the growth and the ascending channel. At the time of the publication of the forecast, the index is trading at 3236. At the moment, we should expect an attempt to develop a bullish correction and test the resistance level near the 3265 area. Where can we expect a rebound and the continuation of the fall in the S&P 500 quotes to the area below 3135.
S&P 500 Forecast and Analysis July 24, 2020
A test of the broken trend line on the relative strength index (RSI) will be in favor of falling stock index quotes. The second signal will be the completion of the formation 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 area of 3305. This will indicate a breakdown of the resistance level and continued growth of the S&P 500 with a target above the level of 3645. Expect an acceleration of the fall in stock index quotes with a breakdown of the support area and closing below the area of 3205.
S&P 500 Forecast and Analysis July 24, 2020 suggests an attempt to test the resistance level near the area of 3265. Then, the continuation of the fall to the area below the level of 3135. In favor of reducing the 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 growth in the value of the index and a breakdown of the 3305 area. This will indicate a continued rise with a target above the 3645 area.
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