Yellow Light Rally: SPX Faces Resistance at Open

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Today's Signal

YELLOW LIGHT

I am giving us a yellow light for today after we sold off yesterday. The highs of today are up against 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 · Tuesday, July 21 · via Licia Leslie

Level S&P FUT
Resistance 2 (50-day MA) 7,575.00
Resistance 1 7,526.90
Premarket Price 7,517.25
Support 1 7,474.75
Support 2 7,417.00
SPX Levels Chart

Our resistance is the 20 day moving average and then the median. Support is the lows of the last couple of days and the lows going back to June 30th.

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

+316%

An SPX 7,475 put that expired Monday, July 20 opened at $8.24. By the high of the day it traded at $34.25, a $2,601 gain per contract (316%) for traders who caught the move.

Volume Anomaly

SPX 0DTE Volume: 3.0M Contracts

0DTE SPX volume on Monday, July 20 came in at 3.0M contracts, roughly 2% above the 20-day average of 2.9M. Call and put activity were roughly balanced, with 1.4M calls vs 1.6M puts. The heaviest call volume concentrated at the 7,500, 7,480, 7,490 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

Once again we are beginning the day with a rally and once again I do not trust it. We must close over the median line to get a real rally going. After yesterday's selloff, I think it could happen again. We need a close below $7474.75 to trade lower. We have closed below the 50 day moving average the last two days. Today's close will be important.

Yesterday's Close

SPX

7,443.28

-0.19%

VIX

18.65

-0.64%

SPY

742.09

-0.16%

QQQ

696.06

+0.10%

Licia Leslie

Licia Leslie

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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.

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