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Today's Signal YELLOW LIGHT |
I am sticking with yellow this morning as the high of futures need to break out above the most recent highs of the last four days to take that next leg higher.
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 · Wednesday, October 21 · via Licia Leslie
| Level | S&P FUT |
| Resistance 2 (50-day MA) | 7,882.00 |
| Resistance 1 | 7,830.75 |
| Premarket Price | 7,778.25 |
| Support 1 | 7,734.75 |
| Support 2 | 7,676.00 |
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Futures are trading above our short term downtrend line but need to break out above today's high to get a real rally going.
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
+5,700%
An SPX 7,790 call that expired Tuesday, October 20 opened at $0.05. By the high of the day it traded at $2.90, a $285 gain per contract (5,700%) for traders who caught the move.
Volume Anomaly
SPX 0DTE Volume: 3.2M Contracts
0DTE SPX volume on Tuesday, October 20 came in at 3.2M contracts, roughly 2% above the 20-day average of 3.1M. Call and put activity were roughly balanced, with 1.6M calls vs 1.6M puts. The heaviest call volume concentrated at the 7,720, 7,730, 7,725 strikes. On the put side, the 7,700, 7,710, 7,715 strikes saw the most action. The put/call ratio finished at 1.04, a fairly neutral read from the options market.
Editor's Note
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Licia Leslie 0DTE Analyst, Option Pit |
We may trade in a tight range today as we await some big earnings reports after the close. SMH is up quite a bit, continue to watch that one as it needs to clear $559. IWM led the rally yesterday and is trying to continue it today. Crude is quiet this morning with the dollar and yields lower. Path of least resistance is to the upside.
Yesterday's Close
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SPX 7,712.57 +0.28% |
VIX 17.31 -6.13% |
SPY 769.05 +0.34% |
QQQ 717.63 -0.10% |