S&P 500 Forecast for Wednesday January 5th, 2022


Theme:

Two equal and opposite moves that cancel each other out.


Behaviors:

Back and forth in a tight range around the high and volatility and price swings around the low.


Overview:

In the pre-market we have a peak that forms when we breakthrough resistance, and we stay there briefly before we break down through that same price level. This creates what looks like an upside down U-shape. We have a sideways-S formation right around the open, two declines with an incline in between. We also have an important support level is highlighted and we try to re-establish it at a significant price level right before the open. There is a big move off of support with a lot of momentum from 10am to 11am. Then we push up to the upper end of a range between 11am and noon. There is a sharp decline that retraces the big move higher downward in the following hour.


We turn around and move higher again, it is almost irrationally higher. We have some volatility that picks up between roughly 2pm and 3pm. There is an opportunity in the midst of meeting a resistance level. In the last hour we have a selling off from an overbought territory on the RSI. Congress is highlighted right around the close, and there is a push from support to resistance. In the post market there is a rally along a diagonal support level and we meet a resistance level before we pull back.



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