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Today's Signal YELLOW LIGHT |
I am giving us a yellow light as the futures are holding the 20 day moving average but we must clear that downtrend line at $7713.75 in order to rally higher.
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 · Friday, August 21 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,780.25 |
| Resistance 1 | 7,713.75 |
| Premarket Price | 7,697.75 |
| Support 1 | 7,670.26 |
| Support 2 | 7,629.75 |
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Support is our 20 day moving average which coincides nicely with our median line. Resistance is just above. I would like to clear yesterday's high to really rally.
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
+141%
An SPX 7,710 call that expired Thursday, August 20 opened at $3.20. By the high of the day it traded at $7.70, a $450 gain per contract (141%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 2.4M Contracts
0DTE SPX volume on Thursday, August 20 came in at 2.4M contracts, roughly 11% below the 20-day average of 2.7M. Call and put activity were roughly balanced, with 1.2M calls vs 1.3M puts. The heaviest call volume concentrated at the 7,700, 7,680, 7,690 strikes. On the put side, the 7,650, 7,660, 7,655 strikes saw the most action. The put/call ratio finished at 1.09, a fairly neutral read from the options market.
Editor's Note
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Licia Leslie 0DTE Analyst, Option Pit |
I am a bit cautious of this rally. Crude is trying to break over resistance at $87.25 while bond yields are taking a breather, we still need to watch those. If we breakdown below yesterday's lows we will drop to the 50 day moving average with a stop at those highs in June at $7629.75. This could be a rally to fade, watch your five minute charts.
Yesterday's Close
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SPX 7,641.16 -0.87% |
VIX 16.01 +7.52% |
SPY 762.60 -0.84% |
QQQ 710.93 -0.72% |