Yellow Light Rally: SPX Tests Key Moving Averages

⚠

Today's Signal

YELLOW LIGHT

Be leery of this rally. We may be just testing the 20 and 50 day moving averages from below.

Signal by Licia Leslie

GREEN: High probability of the market moving higher.
YELLOW TODAY: Be cautious when making a directional trade.
RED: High likelihood of the market dropping.

Today's Levels

S&P Futures Key Levels · Monday, July 20 · via Licia Leslie

Level S&P FUT
Resistance 2 (50-day MA) 7,571.50
Resistance 1 7,530.32
Premarket Price 7,526.25
Support 1 7,473.00
Support 2 7,417.00
SPX Levels Chart

Our support is Friday's low and our resistance is the 20 day moving average.

How to Use Today's Levels

Red = resistance: watch for price to stall or reverse; a clean break above is bullish.

Green = support: watch for price to hold or bounce; a break below is bearish.

The center row is the premarket reference point for the session. Trade in the direction of today's signal.

The Number

+218%

An SPX 7,525 put that expired Friday, July 17 opened at $8.82. By the high of the day it traded at $28.05, a $1,923 gain per contract (218%) for traders who caught the move.

Volume Anomaly

SPX 0DTE Volume: 3.4M Contracts

0DTE SPX volume on Friday, July 17 came in at 3.4M contracts, roughly 20% above the 20-day average of 2.9M. Call and put activity were roughly balanced, with 1.6M calls vs 1.8M puts. The heaviest call volume concentrated at the 7,500, 7,490, 7,480 strikes. On the put side, the 7,450, 7,460, 7,440 strikes saw the most action. The put/call ratio finished at 1.09, a fairly neutral read from the options market.

Editor's Note

Licia Leslie

Licia Leslie

0DTE Analyst, Option Pit

I do not trust this rally. The QQQs are up quite a bit but … We need to see this hold into the close and follow through tomorrow. We need a close back above the median line for a true rally and that is at $7571.50. Watch Friday's highs on the five minute chart, that will be resistance.

Yesterday's Close

SPX

7,457.69

-1.01%

VIX

18.77

+12.19%

SPY

743.29

-0.99%

QQQ

695.33

-1.50%

Licia Leslie

Licia Leslie

Share This Article

Licia Leslie

0DTE Daily

SPX Pullback Test: Support Holds or Yields Win

By Licia Leslie

Licia Leslie

0DTE Daily

New highs, yields climbing – crude at support

By Licia Leslie

Licia Leslie

0DTE Daily

SPX holds support, yellow light intact

By Licia Leslie

Licia Leslie

Profits in Pumps

Monday Could Change Everything for the Qs

By Licia Leslie

About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

Popular Posts

Categories

Stay Updated

Subscribe to our newsletter for daily trading insights

Upcoming Events

FOMC Meeting

2:00 PM EST

Earnings Season Begins

Pre-market

Options Expiration

Market Close

NFP Report

8:30 AM EST