S&P 500 Forecast for Tuesday, August 31, 2021

Kapproveb Alcyone
Aug 9, 2021
3 min read

Updated: Aug 8, 2022

Performed by Kapproveb on August 29th

Theme and Overall Behavior:

Range-bound, some sort of upper or lower range is met.

Trade Opportunities:

There is a trade opportunity in the pre-market. The prior day we had the opportunity to purchase some protection in the midst of that end of day rally. It looks like there is some sort of decision in the pre-market that has to do with two leaders, which provides an opportunity to place a trade. The lows and the highs are both trade opportunities, The Trade card shows best times will be when the market is reaching resistance at the upper end of the range. The Princess of Swords is in the low position, indicating opportunity to play neutral positions. Quite a bit of day trading opportunity and positioning a bit further out of the strategy.

Behavior Around Lows:

An opportunity to open positions that play both sides of the market (neutral positions). Something like holding a put and a call at the same strike price or with minimal space between strike prices. Known as strangles and straddles. Volatility around lows.

Behavior Around Highs:

Bullish rotation, something having to do with satisfactory economic data. There is satisfactory expectation about what the decision regarding the judiciary revolves around.

Behavior Around Close:

There is news that comes out. We revisit an old opportunity. This news results in an unexpected failure in the post-market, with mixed, bearish, sideways decline.

Resistance Levels:

Multiple failed attempts to breach resistance. Three failed tests in the first half hour; two or three between 10:00am and noon; another test toward the end of the day. Two main lows, based on the Oppression card, that take place at the bottom of a range.

Open to 11:00am

Right around open there is three failed attempts to reach key resistance followed by a notable decline (failure) in the first half hour. This decline matched by a pretty significant move higher, which will take us at least back to where we were.

Roughly 11:00am-1:00pm

A peak is created, and we are followed by a drop. After this comes a rally, taking us back to the same level from which we dropped. The upper and lower ranges will be met during this peak, drop, and rally. There will be a low before noon, and investors are going to make some sort of defensive play and favor protected investments. There is sideways bullish rotation around the low and a move higher, back to the same level as the peak (Ace of Cups, U-shape).

The day’s low, a pop, a drop through support to the day’s low again, all between roughly 11:00am and 1:00pm.

We have the high, to the low, to the high (reaching ends of the range) followed by a drop through support levels.

We have the high from which we fell relating to the Indolence card. This card always comes after a high, indicative of a high being wasted and possibly not revisited within the reading (today’s) timeframe. From the low that we hit, we will possibly go lower between noon and 1:00pm, maybe even into 2:00pm.

Roughly 2:00pm – 3:00pm

There is an opportunity between 1:00pm and 2:00pm to take profits and/or roll positions based on the Ace of Disks. This will most likely be a low. Starting around 2:00pm, The Adjustment card causes a shoot up from the low to a healthy level.

Roughly 3:00pm – Close

We have the end of a period of volatile consolidation marked by a big move higher, transitioning into bullish rotation. A judiciary or business leader is highlighted, making a careful, balanced, big decision, having to do with law and order. This has definitely been a theme recently. There is mixed, sideways bearish behavior at the close.

Last Thoughts:

It could be that people had an expectation about the news or decision, and something about it did not meet expectations, causing the market to respond negatively. We have a high and a low in close proximity. High and low between 11:00am and 1:00pm, and then possibly again between 1:00pm and 3:00pm.

A Look at the One-Month Overview for August:

We have the Princess of Cups on the final day. We test the month’s high on the 31st, and decline off of that on September 1st, which is a sharp move. We open long positions on August 31st and plan to sell them the next morning.

Prognostic markup updated based on price levels.