Expecting Test of High in April
A reoccurring theme in the market is the three-period test of highs or lows. April may mark the three month test of the high in SPY (SPX). Throughout the past years, prices blew right through the previous high. The last time we saw such a move was in October of 2015. The move carried into November but ultimately failed. What came next, in rather quick order, was a reversal and new lows.
Interesting profit opportunities exist initially for the expected move up. SPY options expiring on May 4 would take you beyond the end of April, enabling you to include the whole month (the 30th falls on a Monday). And should new highs not unfold, a retest of recent lows could be expected. Wild swings ahead for stocks.
Interesting profit opportunities exist initially for the expected move up. SPY options expiring on May 4 would take you beyond the end of April, enabling you to include the whole month (the 30th falls on a Monday). And should new highs not unfold, a retest of recent lows could be expected. Wild swings ahead for stocks.
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