Stock index S&P 500 continue to move as part of the fall and the formation of the bullish Wolfe Wave pattern. Moving averages indicate a short-term bearish trend. Prices broke through the area between the signal lines downward, 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 the level of 4293. At the moment, we should expect an attempt to develop a fall and a test of the support level near the 4275 area. Where can we expect a rebound and a continued rise in the S&P 500 quotes to the area above the level of 4525.
S&P 500 Forecast and Analysis October 6, 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 area of 4135. 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 3845. Expect an acceleration of the rise in stock index quotes with a breakdown of the resistance area and closing of quotations above the 4395 area, which will indicate the completion of the formation of the bullish ”Wolfe Wave” pattern.
S&P 500 Forecast and Analysis October 6, 2021 suggests an attempt to test the support level near the 4275 area. Then, a continuation of the rise to the area above the 4525 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 4135 area. This will indicate a continued decline with a target below the 3845 area.
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