S&P 500 Forecast for Tuesday, May 10th, 2022



Theme:

Selling from a high.


Overview:

We have profit-taking from overbought territory, or nearly overbought, this would be around the top range of RSI. Settling down from that, there is a decline to a support level and then we bounce along that support in the pre-market. The end of that move looks to be right around the open. There is an opportunity to cash n between the open and the first half hour. We have a high and alow correlated to the 10 to 11 oclock hour. We have three failed attempts to break through key resistance, which will be the top of a range. There is a day’s high and we break down sharply after that failed attempt. There is more back and forth volatility as we move forward. Midday there is going to be a prominent decline, a sharp drop to the bottom of a range. This will be the second day’s low. There could be one or two lows in there. There is a trade opportunity in the midst of a sharp decline, which will probably be when I get out of these puts. We have price swings moving into a lower price and then a sharp decline through multiple support levels as we move into the close. There is a revisiting of a crest in the midst of some erratic behavior near the close. A fast, sudden move higher making the end of a decline takes place in the post-market.


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