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Today's Signal YELLOW LIGHT |
I have to go yellow again as the S&P 500 futures are up against resistance and the QQQs and SMH are lower.
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 · Thursday, November 5 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,798.75 |
| Resistance 1 | 7,736.80 |
| Premarket Price | 7,720.75 |
| Support 1 | 7,650.00 |
| Support 2 | 7,596.75 |
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Our first level of resistance is our high so far and it is holding. It is the convergence of the 20 and 50 day moving averages on the daily chart.
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
+370%
An SPX 7,745 call that expired Wednesday, November 4 opened at $1.15. By the high of the day it traded at $5.40, a $425 gain per contract (370%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 3.4M Contracts
0DTE SPX volume on Wednesday, November 4 came in at 3.4M contracts, roughly 7% above the 20-day average of 3.1M. Call and put activity were roughly balanced, with 1.6M calls vs 1.7M puts. The heaviest call volume concentrated at the 7,710, 7,700, 7,715 strikes. On the put side, the 7,700, 7,690, 7,695 strikes saw the most action. The put/call ratio finished at 1.05, a fairly neutral read from the options market.
Editor's Note
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Licia Leslie 0DTE Analyst, Option Pit |
SMH is down over 3% this morning with QQQs lower also. The equal weight (RSP) and Dow stocks (DIA) were able to shrug that off yesterday and trade much higher. We will see if the divergence continues today. I think it may take us lower.
Yesterday's Close
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SPX 7,688.62 +1.58% |
VIX 16.61 -20.30% |
SPY 766.81 +1.65% |
QQQ 691.95 +0.97% |