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S & P500 – fell, squeezed, back up, and gold stands at a crossroads


Scenario implementation: not executed

Gold failed to develop another upward impulse. Breaking out of the flat, in which the price was before, it began to grow, however, already at the level of 1830, it obviously met resistance, which it could not overcome. As a result, this resulted in a subsequent decline with a return to the zone of the previous range.

Such a violation of signal levels with a return to the initial positions may hint at a false breakout. It is quite possible that this may become a signal for the development of a reverse movement, which in this case is most likely corrective.

Forecast: decrease is expected
S & P500 - fell, squeezed, back up, and gold stands at a crossroads

A rebound from the lower boundary at 1796 with an increase and a return return under the level of 1813 gives a signal for the formation of a lead-in formation and the presence of existing boundaries. It is quite possible that the support at 1796 will not immediately release the price, which means some continuation of the existing flat with a repeated retest of the resistance at 1813 as well. Confirmation of intentions to decline will be a confident breakdown of the lower boundary at 1796, which will aim the quotes in the area between 1773 and 1752.

A signal to cancel the current scenario will be an increase to the reversal level at 1830 with its subsequent breakdown upwards.

S &P500

Scenario implementation: not executed

The S & P500 index was unable to continue its growth, contrary to the expectations of the previous survey. There was no new record high. The price did not manage to overcome the level of 4388, which, obviously, acted as a serious resistance, because immediately after its double retest, the price plummeted downward, breaking through both the support at 4358 and the reversal level at 4317, subsequently reaching the level of 4233.
S & P500 - fell, squeezed, back up, and gold stands at a crossroads

Immediately after the rapid decline, the quotes almost instantly turned around and began to recover, recouping their recent losses. Such a V-shaped reversal indicates an intention to continue growth.

Forecast: growth expected
S & P500 - fell, squeezed, back up, and gold stands at a crossroads

At the moment, confirmation of intentions to continue the growth will be the confident consolidation of the index in the current price area with a possible local correction to the zone from 4317 to 4302. But the retest and the subsequent pullback from this zone can give a signal for the renewal of the upward impulse, which will aim at the area 4388 and 4418.

Cancellation of the current scenario will take place if the price continues to decline and moves below the reversal level at 4302.


Arman Beisembayev, Tickmill expert

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