Stock index S&P 500 continue to move as part of the correction and the formation of the «Head and Shoulders» reversal pattern. At the time of the publication of the forecast, the index is trading at the level of 3241. At the moment, we should expect an attempt to develop a bullish correction and test the resistance level near the 3255 area. Where can we expect a rebound and the continuation of the fall in the S&P 500 quotes to the area below the level of 3145.
S&P 500 Forecast and Analysis July 30, 2020
In favor of falling stock index quotes, a test of the trend line resistance line on the relative strength index (RSI) will come out. The second signal will be the completion of the reversal pattern formation. Cancellation of the option of falling index quotes will be a strong growth and a breakdown of the area of 3295. This will indicate a breakdown of the resistance level and continued growth of the S&P 500 with a target above the level of 3625. Expect an acceleration of the fall in stock index quotes with the breakdown of the support area and closing below the area of 3175.
S&P 500 Forecast and Analysis July 30, 2020 suggests an attempt to test the resistance level near the area of 3255. Then, the continuation of the fall to the area below the level of 3145. 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 3295 area. This will indicate a continued rise with a target above the 3625 area.
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