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Today's Signal YELLOW LIGHT |
Yellow light as we are having a little pullback this morning. As long as we hold support, our rally will continue.
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, October 5 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,834.00 |
| Resistance 1 | 7,812.00 |
| Premarket Price | 7,772.00 |
| Support 1 | 7,754.75 |
| Support 2 | 771.11 |
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Our resistance is right at the median line coinciding with Friday's high. As long as we stay in the upper half of Friday's big bullish candle our rally will remain intact.
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
+202%
An SPX 7,695 put that expired Friday, October 2 opened at $4.40. By the high of the day it traded at $13.30, a $890 gain per contract (202%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 3.3M Contracts
0DTE SPX volume on Friday, October 2 came in at 3.3M contracts, roughly 11% above the 20-day average of 3.0M. Call and put activity were roughly balanced, with 1.6M calls vs 1.7M puts. The heaviest call volume concentrated at the 7,725, 7,730, 7,750 strikes. On the put side, the 7,700, 7,715, 7,720 strikes saw the most action. The put/call ratio finished at 1.03, a fairly neutral read from the options market.
Editor's Note
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Licia Leslie 0DTE Analyst, Option Pit |
Crude is lower this morning and bond yields were trading higher earlier in the session. Watch the RSI on the ten year move back below 70 which is a sell signal on the yields. We then will resume our rally. Below $7754.75 we will trade down to the 50 day moving average which needs to hold.
Yesterday's Close
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SPX 7,722.72 +0.73% |
VIX 15.31 -6.59% |
SPY 769.64 +0.74% |
QQQ 749.58 +1.02% |