S&P 500 Forecast for Monday January 31st, 2022


Theme:

Three failed attempts to break resistance and a sharp decline after the third failed attempt.


Overview:

We notably rally off of support in the pre-market and there is some selling from a peak or crest right around the open when we reach close to 80 on the RSI. Then there is a big push higher and we fail to break resistance and drop in the next hour. Between 11am and 12pm, we have a flight to safety, and a move higher with retracement back down within the next two hours. Between 1pm and 2pm, we actually break through resistance and turn that into new support. There is a decline in the midst of these moves around 2pm, and between 2pm and 3pm there is a sharp move to the upside from possibly being oversold. We revisit a crest at a support resistance level that we visited already, and then there is a sharp drop to an important bottom or low right around the close. This is followed by a sudden move to the upside in the post-market


Around the highs we have a big move higher to reach them. At the low there is going to be a prominent drop.


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