S&P500 Forecast for Tuesday, May 17th, 2022


Theme:

A rally that increases with momentum as we move forward in time.


Overview:

It looks like we want to cash in on a low right around the open. This is also an opportunity to open up some long positions based on the trach opportunity. In the pre-market we have volatility increasing as we move forward. There is a decision between two leaders of nations that is highlighted around the open in addition to an important resistance level. In the first half hour there is a trade opportunity around this price level, and we can open long positions. We move higher from around 10am and we may break back down through resistance. Midday we see a big push to reach a distant resistance level that looks like it is the high for the day. Around noon there is an opportunity to open some short positions and sell those calls that were purchased in the morning. This may happen closer to 1pm. Then we test resistance and it looks like we are going to break through but then we fall. We break down through support and go deeper after 2pm and revisit an old problem In the last hour of trading there is an opportunity to open long positions again so that you are positioned with call and puts to play volatility.


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