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S&P 500 Forecast for Tuesday, October 19, 2021

Updated: Oct 3, 2022

Overview:

There will be a big move to the upside around the highs, and the highs and the lows are going to be in close proximity. The low is going to take place when there is a flight to safety around a notable price level. When we look at the theme we have the Prudence card, which foretells of a fake-out, whipsaw, tops, bottoms, or a combination. It is one of the most difficult cards to read. Based on the high and the lows in the first half hour, I’m going to say that there is a whipsaw there. There will be a whipsaw off of a notable price level, which is the Science card. Then there will be a change in direction from that price. It is a bearish day. In the morning I am looking for something substantial for an opportunity to sell short positions.

The Trading Day

The Sneak Preview card yesterday was the Princess of Cups, and we find it today in the pre-market. This is an opportunity to open long positions in a decline. I am thinking this is probably a drop. There is a definite move to a possible breakout right around the open. In the first half hour we have a high and a low for the day, and it is also an opportunity to open short positions. In the following hour, from roughly 10:00am-11:00am, I have an opportunity to either cash in on one of those trades or roll, but it looks like there is a deep drop there.

We have another low at roughly 11:00am-12:00pm, and off of that we have a big push to the upside, having something to do with economic progress. Around midday we are going to bump along resistance levels. We may break through one or two, and then from 1:00pm-2:00pm we have three pokes through the same resistance followed by a sharp decline. From 2:00pm-3:00pm, we have a decline through a significant support level, and it also may come from a temporary peak.

In the last hour we have back and forth motion through the same price level. Generally speaking, with the Virtue card, we will go back and forth three times and then it confirms a breakout. The Adjustment card is right around the close as well, which is very bullish. At the push around the close there will be a confirmation of a bullish trend and then a move to the upside. Even in the post-market we see some upward movement.