S&P 500 Wave Analysis – 18 October, 2022

• S&P 500 reversed from key support level 3570.00

• Likely to rise to resistance level 3800.00

S&P 500 index recently reversed up with the daily Bullish Engulfing from the key support level 3570.00 (which stopped the price at the start of October) standing near the lower daily Bollinger Band.

The upward reversal from the support level 3570.00 started the active short-term corrective wave 2.

Given the improving risk sentiment globally and the clear divergence on the daily Stochastic indicator, S&P 500 index can be expected to rise toward the next resistance level 3800.00 (top of earlier daily Evening Star from the start of this month).