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Today's Signal YELLOW LIGHT |
As crude collapses and bond yields drop the market has a nice rally this morning. I am giving us the yellow because the futures are right up against the resistance.
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 27 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,554.75 |
| Resistance 1 | 7,524.75 |
| Premarket Price | 7,518.00 |
| Support 1 | 7,474.75 |
| Support 2 | 7,417.00 |
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The high, first level of resistance, lines up perfectly with the our short term downtrend line. Above there we need to clear 7554.75 to get a real rally going.
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
+251%
An SPX 7,455 call that expired Friday, July 24 opened at $3.70. By the high of the day it traded at $13.00, a $930 gain per contract (251%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 3.3M Contracts
0DTE SPX volume on Friday, July 24 came in at 3.3M contracts, roughly 16% above the 20-day average of 2.8M. Call and put activity were roughly balanced, with 1.6M calls vs 1.7M puts. The heaviest call volume concentrated at the 7,450, 7,460, 7,440 strikes. On the put side, the 7,400, 7,420, 7,410 strikes saw the most action. The put/call ratio finished at 1.07, a fairly neutral read from the options market.
Editor's Note
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Licia Leslie 0DTE Analyst, Option Pit |
Oil is collapsing and yields are falling in response the Iran peace news. We've seen this before too many times, I don't trust it. Watch the resistance levels. We need a clear break over $7554.75 for this downtrend to change.
Yesterday's Close
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SPX 7,411.98 +0.05% |
VIX 18.58 -0.64% |
SPY 738.93 +0.10% |
QQQ 684.23 -1.12% |