Today ushers in the last trading day of May and our quite reliable end of the
month trading patterns.
May's pattern shows the most strength out of all the months until about 2:45pm est where we can expect a reversal of the upward trend and a 50% retrace of the days strong gains.
The pattern for May's last trading day is as follows:
OPEN to 10:30am est. - Sharply Higher
10:30am est. to 12:00 Noon - Sideways Consolidation with a slight upwards bias
12:00 Noon to 1:40pm est. - Strong Rally
1:40pm est. to 2:00pm est. - Slight Pullback
2:00pm est. to 2:45pm est. - Higher
2:45pm est. to CLOSE - Sharply Lower, giving back 50% to 62% of the days gains
Please keep in mind that this is simply an historical pattern and although it may have strong probabilities, there are years that the pattern simply does not emerge. Here again though is opportunity as we look for a complete inverted pattern to play.
For example, if we see the market doing the complete opposite at the times specified above, then we can assume the pattern has inverted and we must flip everything to its opposite.