S&P500 index forecast 2022

S&P500 index october november

American Stock Exchange 2022 forecast for October November

American Stock Exchange 2022 analysis and trading signals and investments in the S&P500 Index using the technique of the American economist W.D. Gann.

S&P500 Stock Exchange Chart

Weekly S&P500 forecast

From the weekly top of January 07, 2022, the price dynamics began to reverse the trend from bullish to bearish.

In the photo just above the purple 1×4 vectors are clearly visible that outline a descending corridor in which prices alternate with a negative trend.

In particular, the prices of the S&P500 Index, during the week of 01 April and 19 August 2022, interacting with the price-time outlined by the top of the channel, generated tops which were followed by significant downward phases.

Of particular note is the Set Up week of August 26, 2022.

The bearish break of the low relative to 19 August indicated the restart of the corrective dynamics that brought the prices to 4,203 and 3,584 at the end of September.

The next temporal cycle expiring coincides with the week of next October 21st.

The negative infringement of the weekly low of 14 October, which is currently at 3,568, will cause a negative acceleration, with the first angular supports at 3,505; 3,386; 3,280.

Only the achievement of 3,845 will indicate a positive lateral recovery of the prices: resistance in 3,740; 3,780; 3,835 area.

American Stock Market 2022 medium term trend

The uptrend started in March 2020, reached a top in January 2022 at 4,818 on the level of static resistance.

The yellow vectors, visible at the top of the slide, constitute the median price-time ratios of the medium term ascending channel.

These angles have provided a strong magnetic field to the evolution of the trend in the S&P500 market:

in fact, at first they acted as dynamic supports, in the months of February-March 2022, and subsequently from last August by resistance.

Furthermore, the month of August 2022 coincided with important temporal Sets Up.

The violation of the minimum of August, which took place in September, indicated the continuation of the corrective trend until the next temporal cycle.

The next static and angular supports are located in area 3.280; 3,200.

Financial markets today: long term S&P500 Index

In the first quarter of 2022 the prices of the S&P500 Index reached its Natural Drift with the reaching of 4,226.

However, in the following quarter, the prices began to gradually abandon the 1×1 corner until reaching, at the beginning of the fourth quarter, the 1×2 corner at 3,588 (radiated in yellow in the photo).

The long-term dynamics are therefore negative with the next supports in the 3,290; 3,020-2,900 area.

Only the return above 3,375 will indicate a first sign of the birth of a new driving force.

Stock Market signals with the Gann technique

The American economist William Delbert Gann was one of the first scholars of the twentieth century to interpret the evolution of Stock Market prices through the correlation of three dimensions: price, time and trading volumes.

The geometric mathematical model he conceived is linear and very different from the probabilistic one that was being born with second degree equations and completed in the 1970s with the pricing of Options by Black and Scholes.

In addition to identifying the Drift and the Variance Rate of the title in question, he spent many years in the study of temporal cycles, managing to identify not only temporal cycles, not only natural periodic cycles but also dynamic ones that are based on the evolution of the past trend.

The Sets Up, that is the signals of entry and exit from the trade of a particular listed security, are based on particular sections of these cycles in which the price-time of the market undergoes the greatest changes.

The Top Trader© Stock Exchange software was created with the purpose of correctly applying the Gann technique and can be used in this blog.