S&P 500 Forecast for Friday February 4th, 2022


Theme:

Two equal and opposite moves to cancel each other out.


Overview:

We have a sharp decline in the midst of some price swings in the pre-market. We have an irrational rally higher to a distant resistance level in the first half hour. There is a big move right around the open. From 10am to 11am, we have an intentional fake out or shake out. There is a correction and that is the moment where we want to drop. From 11am to 12pm we have a sudden move higher within a period of volatility that marks the end of that period. From 12pm to 1pm there is another sharp decline. We revisit a crest and have an M-shape that crisscrosses back and forth through price levels. There is an opportunity to revisit a crest at 2pm or 3pm. There is a minor rally that picks up steam and becomes much more pronounced. We have a breakdown from that rally through diagonal support. We revisit a low that was significant in the post market.


Around the highway break through resistance even though everyone expects the opposite. There are flights to safety around the low.


Sneak Preview:

Cash in on some positions and trade around a poke up and back down.


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