S&P 500 Forecast for Monday, October 18, 2021

Updated: Oct 3, 2022

Overview:

We have a decline after some sort of disappointment. There is an expectation that does not come to fruition, so we have some volatility. It is very likely that there is a gap down or a sharp decline at the open. This disappointment likely has to do with a female leader. In the pre-market there is a move higher along a diagonal support line that breaks through a resistance level. It meets another resistance level before slightly falling back. This will be a high of the day, but off of it we have a sharp decline around the open.

Right at the open there is a trade opportunity. There is some fluctuation after or in that sharp decline on the way down. Out of a scary decline we have a move higher as a notable move to the upside. This will be around 10:25ish. We have a decline starting around 11:20am-11:25am, after multiple attempts to break through resistance. There is another decline after we fail to break through this resistance around noon to 1:00pm. However, there is a trade opportunity in the midst of volatility between 1:00pm-2:00pm. There is a high correlator in this volatility as well, indicating a high or a notable peak somewhere between 1:00pm-3:00pm.

It looks to me like the main low is at the end of the day or tomorrow morning, which is trade opportunity to trade those shorts. The high correlators align with the trade correlator, meaning the highs are going to be trade opportunities. It is the Princess of Swords, which means that I can position myself on both sides of the market again. A push higher out of some a decline and headwinds is seen around 2:00pm-3:00pm. There is a petering out of volatility and volume with a big push right around the close, which is the completion of a trend. There is upward movement through the day.

Looking to Tomorrow:

There is an opportunity to sell out of any short positions right around the open for a handsome profit.