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S&P 500 Forecast for Friday, October 8, 2021

Updated: Oct 3, 2022

Overview:

We have a sharp decline. The high that appears early in the day is based on economic data and a male leader of economic authority.

Behavior at the Highs:

We breach a resistance level and for a short period is seems as though we establish new support.

Behavior at the Lows:

A brief high is formed and then we break down through multiple support levels. First, we break through one, bounce along probably twice, and the third time we go through and break down through multiple support levels. This is how we end up at the low.

Pre-market to Noon:

From a high in the pre-market, there is some selling off. There is an opportunity and then a move high right at the open. There is a sharp move to the upside within a period of volatility during that first half hour, where we see a low. There is a trade opportunity around the high, we likely see three pokes through a resistance level at the same high we had in the pre-market. Then we have a decline through support, which is followed by another trade opportunity between 11:00am and noon. We failed to break a resistance level and/or go into a straight decline. However, there is a definite decline.

Noon to Post-market:

We hit the day’s deepest low around 1:00pm, there is a support level established here. We then shoot up to reach a day’s high, which is a little bit higher than the previous day’s high. We have a sell off from this high that happened around 2:00pm-3:00pm, and we reach the next notable low in the last half hour. Somewhere in here the President is highlighted, and there is also a turn-around to the upside. There is a deep U-shape right around the close, and that is also marking a day trade opportunity, possibly two, right before the close. It is also a bigger opportunity to open some short positions and make some more money over the weekend.

Looking Forward:

It is likely that we hit a day’s low on Monday the 11th, right around the open and 10:00am. Then we will see an even lower low. The Sneak Preview card for this day shows failed attempts to break through key resistance.