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Today's Signal YELLOW LIGHT |
Yellow light this morning as we are opening lower and trading below our median line.
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, August 31 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,768.00 |
| Resistance 1 | 7,713.75 |
| Premarket Price | 7,696.25 |
| Support 1 | 7,661.50 |
| Support 2 | 7,629.75 |
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We are back to trading around the median line and below 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
+137%
An SPX 7,765 call that expired Friday, August 28 opened at $6.00. By the high of the day it traded at $14.20, a $820 gain per contract (137%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 3.5M Contracts
0DTE SPX volume on Friday, August 28 came in at 3.5M contracts, roughly 33% above the 20-day average of 2.6M. Call and put activity were roughly balanced, with 1.7M calls vs 1.8M puts. The heaviest call volume concentrated at the 7,750, 7,720, 7,740 strikes. On the put side, the 7,700, 7,710, 7,705 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 |
The 10 year bond yield has broken through the resistance it has held going back to July 23rd. Crude is also rallying. This is putting a damper on our stock market rally. Also keep your eye on SMH still. If we do not get a close back above $7713.75, we will trade lower from here.
Yesterday's Close
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SPX 7,711.76 -0.25% |
VIX 14.43 -0.55% |
SPY 769.35 -0.23% |
QQQ 716.43 -0.65% |