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S&P 500 Forecast for Wednesday, May 5, 2021

Updated: Aug 8, 2022

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86% (12 correct statements out of 14 statements.)

The main highlight for today is bad news related to a long standing problematic relationship involving business or finance. The overall behavior of the S&P 500 throughout the day is that of a decline after 3 failed attempts to break out through a resistance line. In the pre market investors exhibit definitive optimism pushing the S&P higher with a strong sudden move. This push higher involves the arrival of a moment for which the Street has been waiting. Right around the open there is failed attempt to break resistance. From the open through roughly 10:00 AM there is an extremely powerful move up due to good news. Right around 10:15 there's a transition into a bullish rotation as the result of satisfactory economic data showing continued progression. From the bullish rotation a crest forms when the S&P 500 declines through a diagonal trend line leading to a low right around 11:30. From that trough investors show extreme confidence which is reflected in a strong rally around roughly 11:30 AM. There's [a strong rally] AND/OR [wild swings with an overall bullish direction] between approximately 1:00 PM and 2:00 PM. This overall [increase] AND/OR [wild swings] leads to a break out through a resistance level to reach an additional resistance level at which point the market pulls back due to buyer's remorse. A high forms between approximately 2:00 PM and 3:00 PM when a rally out of a temporary decline eventually transitions into bearish rotation. In the last hour of trading there is a very notable decline. Right around the close a significant choice with life altering implications [between 2 entities] AND/OR [between 2 leaders] is highlighted. The sharp decline in the last hour eventually becomes an equally significant and powerful move higher within the last hour as well on huge volume. Bullish rotation with an overall move higher is exhibited in the post market. An economic leader is also highlighted in the post market. Furthermore of note is that from the lows of this day there will be strong sudden moves higher whereas the highs will be marked by mixed sideways bullish activity around the levels of a previous high.