Stock index S&P 500 continue to move as part of the growth and the formation of a large reversal pattern ”Head and Shoulders”. Moving averages indicate a short-term bullish trend. Prices have broken through the area between the signal lines upwards again, which indicates pressure from buyers of the asset and a potential continuation of the growth of the stock index in the market already from the current levels. At the time of the publication of the forecast, the index is trading at 3920. At the moment, we should expect an attempt to develop growth and test the resistance level near the 3955 area. Where can we expect a rebound and a continuation of the fall in the S&P 500 quotes to the area below 3565.
S&P 500 Forecast and Analysis March 12, 2021
An additional signal in favor of reducing the 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 3995 area. This will indicate a breakdown of the resistance level and continued growth of the S&P 500 index quotes with a target above the level of 4155. Expect to accelerate the fall in stock index quotes with the breakdown of the support area and closing of quotations below the 3695 area.
S&P 500 Forecast and Analysis March 12, 2021 suggests an attempt to test the resistance level near the 3955 area. Then, the continuation of the fall to the area below the level of 3565. 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 3995 area. This will indicate a continued rise with a target above the 4155 area.
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