S&P500 Forecast for Tuesday, April 26th, 2022


Theme:

A notable move upward.


Overview:

It looks like we have a trough in the pre-market and a sharp dip within some volatility right around the open. Off of a low we have a push higher and we fall sharply between 10am and 11am. We have a day’s low right around 10am. There is a large move to the upside to revisit a crest in the midst of some erratic behavior around a price level in the following hour. Between roughly noon and 1pm, we have a trade opportunity and a sharp decline through an important support level. That decline continues further and picks up steam. There are multiple false bottoms on the way down, and we revisit a support level multiple times.


We break down with increasing volatility towards the end of the day. This looks like it will happen between roughly 2pm and 3pm. There is a trade opportunity as well in the same time frame around resistance, which will be to open up some long positions. I would open short positions at that crest around 11:40am and then buy some puts in the midst of that volatility between 2pm and 3pm. Then there is a selling in the last hour and profit-taking from close to overbought territory. Then we have a move higher in the post-market. Overall, we have a move higher that doesn’t last, and we break down notably.


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