S&P500 Forecast for Monday, May 16th, 2022



Theme:

Sideways fluidity and an equal amount of bulls and bears.


Overview:

There is a lot of fluidity and bouncing along resistance. On Friday the 13th, we had a reversal. We either gap down or we open at roughly the same level that we closed at on Friday. We either have a sharp dip or gap down right around the open or both in the pre-market and around the open. We breakdown through support to meet a second support that we bounce along before we break down through more. There is bullish rotation around the open that increases in momentum. However, then there is a sharp decline in the first half hour and a male ruler of nations may be highlighted before 11am. We come out of a dip and move higher around 10am to 10:30am. We reach a trade opportunity and a peak or crest near overbought territory. We will sell off from this, and it will take place around 11am to noon. There will be a selling down and a reversal right around noon, and it looks like we have a day’s high right around here. We have multiple failed attempts to break through key resistance. This high here is a trade opportunity, and there is a lot of volatility around it, so I would say cash in on a call. We meet a high or a crest and we have multiple failed attempts to break through that key resistance. Then we have a sharp decline out of the high somewhere between roughly 1pm and 3pm. There is another prominent crest from which we sell off through multiple support levels, this takes place somewhere in the 2pm to 3pm hour. Then we reach support and go sideways along it, and this is a good opportunity. We meet that support through a sudden dip in the midst of a period of sideways rotation. Right around the close we have three failed attempts to break through resistance followed by a sharp decline that has to do with an agreement between two leaders in the post-market.


6 views0 comments