Stock index S&P 500 continue to move as part of the correction and the beginning of the development of the bullish ”Wolfe Wave” pattern. Moving averages indicate a short-term bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from the sellers of the asset and a 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 4374. At the moment, we should expect an attempt to develop a fall and a test of the support level near the 4295 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the level of 4545.
S&P 500 Forecast and Analysis October 12, 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 rebound from the lower boundary of the bullish ”Wolfe Wave” pattern. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the 4095 area. 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 3805. Expect an acceleration of the rise in stock index quotes with the breakdown of the resistance area and closing of quotations above the 4445 area, which will indicate the completion of the formation of the bullish ”Wolfe Wave” pattern.
S&P 500 Forecast and Analysis October 12, 2021 imply an attempt to test the support level near the 4295 area. Then, a continuation of the rise to the area above the 4545 level. A test of the trend line on the relative strength index (RSI) will be in favor of the rise in 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 4095 area. This will indicate a continued decline with a target below the 3805 area.
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