S&P 500 Forecast for Monday, October 25, 2021

Theme:

Abundance. A card in which you see an incline through a resistance level to a peak, and then a drop down through that same price level, which would have been acting as support at that point.

Behavior Around Highs:

Multiple failed attempts to break resistance.

Behavior Around the Lows:

Sharp dip during a period of volatility.

Overview:

In the pre-market, we have three pokes through a resistance level, followed by a sharp decline. There is a low in the pre-market, and around the open we have a pop to the upside off of a low to reach the day’s high. We have some selling from that peak down to a support level from roughly 9:30am-10:00am. From 10:00am-12:00pm will include a high, most likely around 11:00am. The highs today are trade opportunities, so this one will be an opportunity as well. I see an opportunity to take some profits on long positions or to open some short positions. This is the Ace of Disks, a relatively auspicious card, and that is around the high.

From noon to 1:00pm we have some notable move to the upside, but there is some fluctuation in the next hour. There is a trade opportunity near the low between 1:00pm-2:00pm. There is a relatively unexpected happening between 2:00pm-3:00pm, something having to do with an agreement between two leaders. There is an opportunity that sends the market into a sharp decline off of a peak 2:00pm-3:00pm, followed by a sharp decline into the end of the day. There is a trade opportunity as well, possibly around a peak or a high near 3:30pm. Right around the close is a completion of a trend. In the post-market we have a sharp decline, and we will not revisit a high that was formed today.

Looking to Tomorrow:

A notable move to the upside and some bullish rotation.