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S&P 500 Forecast for Thursday, October 7, 2021

Updated: Oct 3, 2022

Theme:

There is a failed attempt to break key resistance, followed by a decline. It looks to me that we have more than one of these.

Around the Highs:

The high today marks an opportunity to open some positions. It looks to me like we are looking at probably cashing in on some long positions but also opening some short positions.

Overview:

There is a high in the pre-market with a sharp decline through multiple support levels. Then we have a crisscross right around the open, which will cross three times through the same price level. It will be support, resistance, support, or vice versa. In the first half hour there will be a sharp decline. The highs and the lows are all going to be very close together. It looks like we go from a high to a low in that first half hour. In the next hour, from 10:00am-11:00am, Congress is highlighted, and there is a high and a low there as well. It looks like a lower low but the same high.

Then we come back up against that high between noon and 1:00pm. Then we have a sharp decline with an opportunity to open a position in both directions between 1:00pm-2:00pm. We hit the day’s bottom here, however we still do have price fluctuation. We have another high and low within the same hour in the post-market. We still are range-bound in the last hour of trading. There is a peak at the week’s high. The high we saw yesterday will likely be the high around the close, and it will be a pop up to the resistance level that we keep testing and a breakdown through that same price level as failed support. There is a sudden sharp move higher within a decline in the post-market, which is how we get the high and the low.

Looking to Tomorrow:

The following day’s Preview cards show the revisiting of an old opportunity or looking back at an old financial situation. Then we have a significant correction.