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S&P 500 Forecast for Thursday, May 20, 2021

Updated: Aug 8, 2022

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85% (11 correct statements out of 13 statements.)

The overall behavior and theme in this position here is the Two of Cups. Generally speaking the Two of Cups suggests a breakout through resistance and then a quick reversal and dip back below, creating a pattern. This card in this specific reading has no relationship to any other card, giving me the sense that this pattern may be followed but not very stringently. In the pre-market, a halting of a bullish trend is exhibited by a sharp decline through at least one support level. It has something to do with a stall in negotiations. Right around the open, there’s a breakdown through a support level after testing resistance twice. Price then bounces along the next support level before breaking down through multiple support levels. This is due to paralysis from an indecision. From the open through roughly 10 AM EST, the S&P 500 moves significantly higher out of a decline and then transitions into bearish rotation. The move significantly higher creates a peak or a trough within the hours of 10 and 11 AM EST, during a period of sideways bullish price swings. Sentiment in the market is that finances are improving and there’s a solid foundation on which to build a rally. From that high in the period of bullish market rotation, we see a mixed sideways decline and consolidation in bearish form. This may be due to an unexpected failure of some kind or disappointment. Again a higher crest is reached, around roughly 12:10 PM EST, creating an opportunity for me to take profits before a dramatic dip during a period of sideways bearish price swings. It then returns to the same crest or peak again within the same hour, breaking through two resistance levels. In essence, testing the same resistance level three times, and in doing so, these two areas create an opportunity and a second opportunity for me to take profits or credits. In the next hour, 1 PM EST to 2 PM EST, there’s a breakdown after failing to break through key resistance. This turns into a notable decline from the failed retest of the high. The first test is between 10 and 11AM EST, then at 12:10 PM EST, and then lastly at 12:50 PM EST with a substantial dip in between during a period of bearish sideways price swings. In the last hour, a significant change in the situation involving economics and finance creates a flat bullish rotation that transitions into bearish rotation with increasing volatility as we move into the close. A low or trough is formed right around the close of the trading session when a strong rally higher, even in the face of frightful declines and wild swings. This higher close is an attempt to fake out traders and cause impulsive decisions. In the post market, there’s a strong bullish move likely from being oversold and this big move higher possibly fills a gap or makes a significant return back to a fair value through a short squeeze. Behavior and theme around the high has to do with a critical choice and life altering implication between two entities, generally between two leaders. There will seem to be a holding pattern until a definitive choice is made at which point there will be a decline after first moving up to a resistance level and then back down to a new low. Behavior around the low is that of sideways bearish price swings. I advise myself to be careful and not to give into impulsive decisions based on market behavior. The following day suggests more bearish rotation with price swings. Free members of TheInvestorProphet.com read these forecasts days in advance. Subscribe now.