Stock index S&P 500 continue to move in the framework of the correction and the beginning of the development of the bullish “Head and Shoulders” pattern. Moving averages indicate a short-term bullish trend. Prices broke up the area between the signal lines upward, which indicates pressure from buyers of the asset and a potential continuation of the rise 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 4498. At the moment, we should expect an attempt to develop a fall and test the support level near the 4425 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the level of 4625.
S&P 500 Forecast and Analysis October 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 rebound from the Neck line 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 4295 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 3945. Expect an acceleration of the rise in stock index quotes with the breakdown of the resistance area and closing of quotations above the 4535 area.
S&P 500 Forecast and Analysis October 20, 2021 suggests an attempt to test the support level near the 4425 area. Then, a continuation of the rise to the area above the 4625 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 4295 area. This will indicate a continued decline with a target below the 3945 area.
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