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S&P 500 Forecast for Friday, October 1, 2021

Updated: Oct 3, 2022

Theme:

It is an overall bullish day, and my sense is that we gapped down hard, like very hard. This may be the bottom of a correction, at least this time around.

Behaviors:

There are multiple headwinds that would make the expectation that we are going to go lower. However, somehow we push higher out of it, even in the face of these headwinds.

At the lows:

We revisit old opportunities, and we have mixed sideways bearish movement.

At the highs:

These will be significant, it would be bullish rotation. But it is nullified because there are no cards correlated to the highs.

Overview:

Congress is highlighted in the pre-market. There is a notable move to a crest, which is also a day’s low in the pre-market and/or right around the open. We have some sideways fluctuation, but more so to the downside around the 9:30am-10:00am hour. From the 11:00am-12:00pm hour we have a sharp decline to reach our first notable support level. There is some sort of difficult emotional situation, that generally doesn’t bode well to the market, so it will go down. This will be around 12:15pm. There may be a bit of a rally there but then we drop through like a rock.

We should have another day’s low right before 1:00pm-2:00pm. There is a peak and then a selling off of a peak. We have a move higher between roughly 2:00pm-3:00pm. It doesn’t last long. So, in the last hour we have the breaking down through a support level to reach another that we bounce along two to three times, before breaking down through that support level and multiple others.

Right around the close we have a pop higher and some pretty notable volatility moving to the downside in the post-market. The trade correlator card foretells of a move higher followed by an equally big move to the downside. With the wealth card we have a low, we come out of a low, we move higher, have another dip and move higher, and then turn around and drop through multiple support levels.