May 10th, 2023 S&P 500 Predictions

• Day’s Theme: A significant move higher in the face of seemingly overwhelming headwinds that stands out on at least a one-day chart.

• Behavior Around the High: The highest high is nullified. In other words, the chart behavior around the high is irrelevant.

• Behavior Around the Low: A sharp drop that stands out within a period of volatility.

• Trade Opportunities:

  • An opportunity to open a long position in the midst of a decline between 2:00 p.m. and 3:00 p.m. You could close that long position at the close or hold it until the following day for a swing trade.

Overview

On May 10th, we’ll likely open lower and rally along a diagonal trend line in the pre-market. We’ll break through horizontal resistance, bump up against another resistance, and then pull back to somewhere between those two price levels. There’s a pretty significant drop through multiple support levels around the open. There’s a resistance level that’s highlighted in the first half hour that we’ve come up against many times before. We’ll fail to break through that resistance level. There’s an opportunity to open a long position in the midst of a decline between 2:00 p.m. and 3:00 p.m. That decline precedes a fast, sudden move higher.

There’s a pop and drop between noon and 2:00 p.m. and we’re bound by the upper end of a range around 2:00 p.m. There’s a significant move higher out of a decline toward the end of the day.

Sneak Preview

On May 11th, we’ll open higher and establish support on a one-day chart. That’s followed by a big move higher on a one-day chart.

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