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S&P 500 Forecast for Tuesday, May 18, 2021

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91% (10 correct statements out of 11 statements.)

The main highlight today is that of an opportunity to open bullish positions while the street is still full of fear. In the pre-market I advise myself to create a balanced strategy through opening and closing positions, hedging, or certain options spreads. Right around the open, a stand still in negotiations is highlighted and a breaking or halting of a bullish trend is marked by a sharp decline through at least one support level. From roughly the open through 10 AM EST, there is a sudden notable move higher that transitions into volatile consolidation with a notable completion of a rally. Between roughly the open and 11 AM EST, a low forms shortly before and/or shortly after a move up through resistance to reach a notable peak before falling back down through the same level it had previously breached. Between roughly 10 AM EST and 11 AM EST a merger acquisition is highlighted and/or a bullish rotation sets in. Between roughly 11 AM EST and 12 PM EST, a day’s high is formed when a reversal at a day’s high leads to a sharp dip within a period of bullish market rotation. Between roughly 12 PM EST and 1:15 PM EST, stocks soar with a very strong upward move reaching for another day’s high due to a promise being fulfilled. The revisiting of a recent high occurs in a period of bullish consolidation between the hours of 1 PM EST and roughly 2:30 PM EST. Between roughly 2 PM EST and 3 PM EST the streets show definitive optimism with a strong and sudden move higher due to an economic situation improving. This sudden move higher is a predecessor to a bearish rotation significantly increasing in volatility as we move into the close. Right around the close, there is a rebalancing exhibited through sideways fluctuations and a balance between in-flow and out-flow on higher than average volume. From roughly the close to the post market, the S&P 500 moves significantly higher out of a decline and then transitions into bearish rotation.