*Accuracy rating update: 91% or 10/11 predictions correct*
Day’s theme: A period of rotation along a key support level on a multi-day chart that ends with a fast, sudden move to the upside.
Behavior around the high: We should see a pretty strong decline off of the high. We’ll do a U-shaped reversal below a support level and then come back to reuse it as support.
Behavior around the low: Out of the low, we’ll successfully turn resistance into new support, however this is nullified so that new support level won’t hold.
Trade opportunities:
A rally to the upside around the open that marks an opportunity to open up a short position.
Overview:
On December 15th, we’ll have a notable move higher, even in the face of seemingly overwhelming headwinds. That rally higher continues into the open. This marks an opportunity to open up a short position. We’ll then have a notable drop through multiple support levels. There’s a crest midday, although this may not be a high for the day. We’ll move higher through a resistance level on a one-day chart, stay above it briefly, then drop back down for a full retracement of that previous move higher.
Between 1:00 p.m. and 3:00 p.m., we’ll have a period of sideways rotation that increases with bearish momentum as we move forward into the end of the day. There are multiple failed attempts to break through key resistance in the last hour and have a lot of ground covered price change-wise. We’ll see a low toward the end of the day and a failed attempt to break through key resistance. There’s another sharp drop right around the close to meet a low, possibly a lower low. We’ll break down through a support level in the post-market that we had recently broken down through.
Sneak preview:
Multiple headwinds pushing the S&P 500 lower on the 16th.
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