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 went down from the area 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 4344. At the moment, we should expect an attempt to develop a fall and test the support level near the 4305 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the level of 4565.
S&P 500 Forecast and Analysis October 14, 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 border of the ”Head and Shoulders” reversal pattern. Cancellation of the growth option for the index quotes will be a fall and a breakdown of the area of 4185. This will indicate a breakdown of the support level and a continued fall in the S&P 500 index with a target below 3865. Expect an acceleration of the rise in the 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 ”Head and Shoulders” pattern.
S&P 500 Forecast and Analysis October 14, 2021 suggests an attempt to test the support level near the 4305 area. Then, a continued rise to the area above the 4565 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 4185 area. This will indicate a continued decline with a target below the 3865 area.
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