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S&P 500 Forecast for Tuesday, May 4, 2021

Updated: Aug 8, 2022

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92% (11 correct statements out of 12 statements.)

An opportunity to take a balanced position through the opening and closing of positions is presented to me today. The S&P 500 is range bound in the pre market. Right around the open there's a very strong and sudden move higher. This is due to [the arrival of a moment for which the Street has been waiting] AND/OR [economic initiatives being taken or a decision is made.] From the open through roughly 10:30 AM there is a strong decline through multiple support levels fueled by [unexpected bad news] AND/OR [a situation that was once relied upon ends with a negative outcome]. The first trough is formed between roughly 10:00 AM and 11:00 AM with a prominent reversal and subsequent rally to the day's first [high] AND/OR [crest] within the same hour. Also within the same hour is a reversal off of the day's first [high] AND/OR [crest]. That first [high] AND/OR [crest] forms between roughly 10:00 AM and 11:15 AM when a sudden big move higher transitions into volatile sideways movement. This volatile sideways movement creates an opportunity for me to open long positions when the second day's [low] AND/OR [trough] forms somewhere between 11:00 AM and 1:00 PM. From that low there is another sudden big move higher that eventually reaches the day's second [high] AND/OR [crest] which forms somewhere between 12:00 PM and 1:00 PM. Congress is highlighted between the hours of roughly 12:00 PM and 2:00 PM. What is cause for bullish sentiment is abandoned due to disillusionment between roughly 2:00 PM and 3:00 PM, reflected in [a decline through a support line] AND/OR [a decline from a high]. In the last hour of trading there's a strong bullish move caused by [the market being oversold] AND/OR [from a short squeeze]. Right around the close the S&P bumps along a support/resistance line as it tests support. In the post market the S&P500 displays sideways bullish behavior.