S&P500 Forecast for Wednesday, May 18th, 2022



Theme:

Revisiting of a past opportunity.


Overview:

We have an important price level highlighted in the pre-market and there is a notable move that takes place just before the open. This has to do with an agreement between two leaders. In the first half hour we have a push higher through resistance and we do not stay there very long before we break back down to the same level from which we came. We have a low between roughly 10am and 11am and we push higher from that. We effectively go from support to resistance in the following hour. We have a breakdown in the midst of volatility and it goes through multiple supports and creates a trade opportunity. This takes place between noon and 1pm, and then there is sideways fluidity and we revisit that support level. There is an opportunity in the midst of sideways rotation between 1pm and 2pm. There is a U-sahped dip that takes place around some perpendicular diagonal trend lines between 2pm and 3pm. Then at the end of the day we have a big push higher and a significant decision is highlighted. The push higher around the close is a fake out that marks an opportunity or a price level from which we go lower and breakdown.


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