I just happened to be thumbing through my seasonal pattern notebook and I came across the Last Trading Day of April's pattern and also the first trading day of May.
The pattern for the last day of April was right on the mark, which increases the probability that the seasonal model for the first day of May should be fairly close as well.
This pattern for Thursday is also confirmed by the typical Thursday pattern as well.
The reason I bring this really only to the attention of Day Traders is that The odds favor this pattern to be a one day event.
The pattern calls for some follow through of the weakness we had today in the morning half of the day, with the days low being put into place in the 11:15 to 11:30 AM EST time frame.
Therefore, should we see some stabilization in this time frame tomorrow and a crossing of the 3 or 5 minute stochastics near this time it could be a very lucrative day trade for call options or going long the S&P 500 futures.
Remember that if you choose the SPY options to make sure you buy an in the money strike of at least 1 point and ideally an in the money of 2 points or more. Being as this will be a day trade only you need not spend the extra money on going out past May on the expiration.
This is a very high risk trade that will be going counter to the down trend that was confirmed today so keep a very close stop in place and make sure you only look to buy the calls in the time frame I mentioned above.