S&P 500 (SPX) - May 6th Week Ahead (Bullish Harami!)S&P 500 (SPX) - May 6th Week Ahead Bullish Forecast
This week, we've observed a bullish signal with a weekly harami candlestick pattern, indicating potential upward momentum. Here's the forecast for the week ahead:
Short-term Outlook (May 6th Week):
We anticipate the S&P 500 to continue its bullish momentum, aiming for new highs.
The weekly harami bullish close suggests a reversal of previous downward sentiment, setting the stage for upward movement.
Our short-term target is 5665 for the S&P 500.
VIX Analysis:
The VIX, currently around $12, may test lower levels this week, possibly dipping below $12.
However, we may see temporary bounces around the $12 mark, possibly occurring a few more times before sustained downward movement.
In the short term, expect fluctuations in the VIX, with potential tests around $12.
Intermediate to Long-term Outlook (Most Likely Q4):
Looking ahead to the intermediate to long term, particularly in Q4, we forecast further decline in VIX values.
We anticipate sub-$12 levels, possibly down to $11.50 or lower, with multiple daily closes supporting this trend.
Upon reaching these levels, we'll position ourselves for ultra-long UVIX/UVXY trades, employing laddered expirations ranging from one week to multiple weeks/months.
We'll maintain directly held positions in anticipation of increased volatility, capitalizing on the VIX's movement.
Summary:
Short-term bullish sentiment prevails, with a target of 5665 for the S&P 500.
VIX may test lower levels, potentially dipping below $12, with short-term fluctuations and possible bounces around this mark.
In the intermediate to long term, expect a decline in VIX values towards sub-$12 levels, where we'll position ourselves for ultra-long trades.
