Stock index S&P 500 continue to move as part of the correction and the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a short-term bearish trend. However, prices broke through the area between the signal lines upward, which indicates pressure from buyers of the asset and a potential continuation of the rise in the stock index in the market from the current levels. At the time of the publication of the forecast, the index is trading at 3894. At the moment, we should expect an attempt to develop a correction and test the support level near the 3825 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the level of 4045.
S&P 500 Forecast and Analysis March 3, 2021
An additional signal in favor of the growth of the stock index quotes will be a test of the rising support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the area of 3775. This will indicate a breakdown of the support level and a continuation of the fall in the S&P 500 index with a target below 3565. Expect acceleration in the growth of stock index quotes with the breakdown of the resistance area and closing of quotations above the 3955 area.
S&P 500 Forecast and Analysis March 3, 2021 suggests an attempt to test the support level near the 3825 area. Then, continued growth to the area above the 4045 level. 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 upside option will be a fall in the value of the index and a breakdown of the 3775 area. This will indicate a continued decline with a target below the 3565 area.
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