Stock index S&P 500 continue to move within the framework of growth and a bullish channel. Moving averages indicate a short-term bullish trend. However, prices broke through the area between the signal lines downward, which indicates pressure from the sellers of the asset and the potential continuation of the fall of the stock exchange index in the market from the current levels. At the time of the publication of the forecast, the index is trading at the level of 4059. At the moment, we should expect an attempt to develop a decline and test the support level near the 4025 area. Where can we expect a rebound and continued growth in the S&P 500 quotes to the area above the level of 4275.
S&P 500 Forecast and Analysis May 20, 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 breakout of the upper border of the “Wedge” reversal pattern. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the 3885 area. This will indicate a breakdown of the support level and a continued fall in the S&P 500 index with a target below 3525. Expect an acceleration in the rise of the stock index quotes with the breakdown of the resistance area and closing of quotations above the 4205 area.
S&P 500 Forecast and Analysis May 20, 2021 suggests an attempt to test the support level near the 4025 area. Then, continued growth to the area above the 4275 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 growth option will be a fall in the value of the index and a breakdown of the 3885 area. This will indicate a continued decline with a target below the 3525 area.
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