Stock index S&P 500 continue to move within the framework of the growth and the bullish channel. Moving averages indicate a short-term bearish trend. Prices are again testing the areas between the signal lines, which indicates pressure from the sellers of the asset and the potential continuation of the fall of the stock 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 4173. At the moment, we should expect an attempt to develop a correction and test the support level near the 4155 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the level of 4325.
S&P 500 Forecast and Analysis May 7, 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 bearish channel. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the area of 4105. 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 3705. Expect an acceleration of the rise in stock index quotes with a breakdown of the resistance area and closing of quotations above the 4105 area.
S&P 500 Forecast and Analysis May 7, 2021 suggests an attempt to test the support level near the 4155 area. Then, continued growth to the area above the 4325 level. In favor of the rise in the S&P 500 quotes, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the growth option will be a fall in the value of the index and a breakdown of the 4105 area. This will indicate a continued decline with a target below the 3705 area.
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