Stock index S&P 500 continue to move as part of the growth and formation of the head and shoulders reversal pattern. At the time of the publication of the forecast, the index is trading at 2989. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance level near the area of 2945. Where can we expect a rebound and a continuation of the fall of the S&P 500 quotes in the area below the level of 2375.
S&P 500 Forecast and Analysis May 12, 2020
A test of the resistance line on the relative strength index (RSI) will be in favor of reducing the quotes of the stock index. The second signal will be the completion of the formation of the «Head and Shoulders» reversal pattern. Cancellation of the option of dropping the quotes of the index will be a strong growth and a breakdown of the area of 3055. This will indicate a breakdown of the resistance level and a continued rise in the S&P 500 with a target above the level of 3195. Expect an acceleration of the fall in the quotes of the stock index with a breakdown of the support area and closing below area 2765.
S&P 500 Forecast and Analysis May 12, 2020 suggests an attempt to test the resistance level near the area of 2945. Then, the continuation of the fall to the area below the level of 2375. In favor of lowering the S&P 500 quotes, the resistance line test on the relative strength index (RSI) will come out. Cancellation of the fall option will be a strong growth and the breakdown of the area of 3055. This will indicate a continuation of the rise with the target above the area of 3195.
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