*Accuracy rating update: 86% or 12/14 predictions correct*
Day’s Theme: Multiple headwinds pushing the S&P 500 lower.
Behavior Around the High: A rally that increases with momentum moving into the high.
Behavior Around the Low: Around the low, there’s a significant bottom or trough, likely first thing in the morning.
Trade Opportunities:
Advised to open up some protection at a crest or peak around 10:00 a.m. This is likely the first high for the day.
A trade opportunity at a crest or peak midday.
Overview
On December 29th, we open at a higher price level in the pre-market, however that price level is brief and easily missed. We’ll then fall through multiple support levels into the open. Right around the open or in the first half hour there’s a notable rally to the upside. That rally is followed by a prominent peak or crest. I’m advised to open up some protection in the midst of that rally into a peak or crest around 10:00 a.m. We’ll then decline from roughly 10:00 a.m. into 11:00 a.m. and see another prominent low or trough form. We’ll move up into another high where we bump up along resistance between roughly 11:00 a.m. and noon.
We’ll move into a crest or peak at resistance midday and there’s a trade opportunity here. We’ll sell from that crest at resistance to and through a support level. This is followed by a U-shaped reversal below that support level where we then come back and reuse that support level as support. We’ll then see a notable decline that picks up steam off of that midday high. That decline moves into the end of the day where we’ll continue to see bearish price swings and multiple failed attempts to break through a key resistance level. Multiple headwinds will push the S&P 500 lower into the close. It looks like we’ll have some sideways rotation or volatility that moves sideways and then there’s a fast, sudden move higher marking the end of that sideways rotation.
Sneak Preview
There’s a move from the bottom of a range to the top of a range out of a decline on the 30th.