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Today's Signal YELLOW LIGHT |
Yellow light because we begin the day with a rally. After yesterday's action, I do not trust it.
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, October 9 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,898.00 |
| Resistance 1 | 7,872.25 |
| Premarket Price | 7,839.00 |
| Support 1 | 7,783.00 |
| Support 2 | 7,730.00 |
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Our resistance is yesterday's high and the ATH. Support sits at yesterday's low and then the 50 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
+333%
An SPX 7,735 put that expired Thursday, October 8 opened at $3.00. By the high of the day it traded at $13.00, a $1,000 gain per contract (333%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 3.5M Contracts
0DTE SPX volume on Thursday, October 8 came in at 3.5M contracts, roughly 15% above the 20-day average of 3.0M. Call and put activity were roughly balanced, with 1.7M calls vs 1.8M puts. The heaviest call volume concentrated at the 7,800, 7,780, 7,770 strikes. On the put side, the 7,750, 7,760, 7,745 strikes saw the most action. The put/call ratio finished at 1.07, a fairly neutral read from the options market.
Editor's Note
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Licia Leslie 0DTE Analyst, Option Pit |
Crude continues to hold support of the 50 day moving average while bond yields are holding the support of the most recent lows. The dollar is consolidating at resistance gaining momentum for the next leg higher. I am leery of this morning's rally. Watch your five and ten minute timeframes for strength and weakness. After yesterday's moves it could happen again.
Yesterday's Close
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SPX 7,765.36 -0.47% |
VIX 15.41 +2.19% |
SPY 773.93 -0.42% |
QQQ 747.58 -1.34% |