Why not?See the pattern? SPY closed within the ascending channel. We might see a green weekly candle next week.
SPY trade ideas
SPY 15m Analysis: FVGs and Key Levels for Next MovesOverview
This idea focuses on the SPY 15-minute chart, highlighting key fair value gaps (FVGs) and critical support/resistance levels. The current price action shows potential for both bullish and bearish scenarios, contingent on price reactions at crucial levels.
Bearish Scenario
Key Level to Watch:
If SPY closes below 566.44, it signals further downside momentum. Traders should look for the formation of the next Bearish FVG to initiate short positions.
Projected Target:
First Target: 550–555 zone (likely demand zone or support area).
Downward momentum is supported by the recent sharp sell-off, indicating heavy selling pressure.
Invalidation:
A sustained move back above 588.85 will weaken bearish momentum.
Bullish Scenario
Key Level to Watch:
For any upward momentum, a Bullish FVG must form above the current price, likely in the 588.85–595.79 range.
Projected Target:
First Target: 595.79
Second Target: 600+, where stronger resistance may emerge.
Invalidation:
Failure to hold above 588.85 could result in further selling pressure.
Volume and Momentum Considerations
While individual candlestick volume isn't displayed, the rapid decline hints at increased selling pressure. Monitor volume closely during retests for confirmation of strength or weakness in price action.
Plan Your Trade:
Use clear invalidation levels to manage risk.
Wait for price confirmation (e.g., closing below 566.44 or a bullish FVG forming above 588.85).
Utilize stop-loss orders to safeguard against unexpected reversals.
Conclusion
This setup allows for flexibility, focusing on key zones and volume confirmation. The bias leans bearish, but a bullish retracement cannot be ruled out if price action shifts momentum. Keep an eye on FVG formations for entry signals.
SPDR S&P 500 ETF Trust (SPY) 2-Hour Time Frame Analysis Current Current Market Overview
As of December 2024, the SPDR S&P 500 ETF Trust (SPY) is showing a bullish trend with the following technical indicators:
MACD : Suggests a buy signal.
RSI : Indicates a neutral signal.
Moving Averages: Both 20-day and 50-day moving averages suggest a buy signal.
Price Action: The support level is at US$600.96, and the resistance level is at US$607.46.
Options Strategy Recommendations
1. Long Call
trade_id: g-663257
Signal: Bullish
Option Strategy: Long Call
Current Price: US$605.57
Strike Price: US$550.00
Expiry Date: 20-Dec-2024
Buy/Sell: Buy
Call/Put: Call
Premium: US$55.46
Stop loss: US$49.91
Take profit: US$61.01
Probability of Profit: 51.4%
Implied Volatility: 96.81%
Max Loss: US$-5546.00
Max Gain: ∞ (infinity)
Break-even price: US$605.46
Days to Expiration: 2
Rationale: This strategy is designed to capitalize on a bullish outlook for SPY, with a high probability of profit and a defined risk-reward profile.
Conclusion
The SPY is currently in a consolidation phase, and the recommended options strategy provides an opportunity to capitalize on potential bullish market movements. The Long Call offers a high probability of profit with defined risk, allowing for profit from significant price movements in the upward direction.
Spy Looks Bullish With a 15min bullish FVG forming S&P 500 (SPY) Price Action Analysis
Current Price and Technical Overview
Current Price: $605.28 (as of last close on 17-Dec-2024)
Market Status: Closed
Day Change: +$0.99 (+0.16%)
Technical Analysis Summary
Overall Signal: Bullish
Oscillators: Predominantly 'Hold', with the Momentum Indicator suggesting a 'Buy'.
Moving Averages: Strong bullish signals from short-term and medium-term averages.
Pattern: Breakout above resistance indicates a bullish trend.
Resistance Level: Potential price target near $608.65.
Pivot Point Analysis: Price is above the pivot level of $606.59, supporting bullish sentiment.
News Sentiment
Sentiment: Entirely positive, likely to drive buying activity and support upward price movement.
Interpretation
The technical indicators for SPY suggest a bullish stance. The strong signals from moving averages and the breakout above resistance levels indicate potential for further gains. The positive news sentiment reinforces this outlook, suggesting a likelihood of price appreciation in the near term.
Trading Strategy Consideration
Given the bullish outlook, traders might consider entering long positions or call options on a retest of the pivot level at $606.59, aiming for the next leg up towards the resistance level of $608.65. However, it's crucial to monitor for any signs of reversal or changes in sentiment that could impact this strategy.
SPY/QQQ Plan Your Trade For 12-17: Momentum Rally PatternToday's Pattern suggests the SPY/QQQ will rally higher - possibly attempting to find a top.
What I find interesting is the big rally in the QQQ/Nasdaq yesterday. Possibly, the Momentum Rally phase hit the NQ yesterday.
Overall, I'm still looking for the markets to attempt to roll into a topping pattern. So, I'm staying very cautious of any big market moves right now.
Yes, if you look at the QQQ/NQ, it looks like the markets are in liftoff mode (bullish), but other data suggests the markets are actually weakening and pulling into a reversion phase.
Gold and Silver will likely find a base/bottom soon. I picked up some Call options on SILJ and GDX recently anticipating the potential rally move.
Bitcoin is well beyond a 100% measured move higher. Even though I believe Bitcoin can rally to 112k - 115k, I'm urging traders to stay cautious (still).
My data suggests the markets are weakening and possibly moving into a pullback/reversion phase.
Get some.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
Bias for Today: Short with Bearish FVGs or Flip Long on Short with Bearish FVGs or Flip Long entering Calls on the First Bullish Fair Value Gap.
AMEX:SPY "Today's market bias is to open with a short outlook. If bearish Fair Value Gaps (FVGs) start to form and price respects them, I’ll look to enter short positions targeting lower levels. However, if price bounces off these zones and a bullish FVG forms, I will shift focus to initiate long positions on the first bullish FVG that sets up cleanly. Watching for clear confirmations and respecting key price action levels will be critical. Let’s stay adaptive to what the market gives us!"
SPY Options: Bull & Bear (Week of December 16)AMEX:SPY
Short-term we are looking at a downside trade as we want RSI to cool off a bit. Key levels at $607 and our key pivot of $604.25 last week.
📜 $604 Put 12/31
Entry: Rejection and 15-min close UNDER $607, entry off retest of resistance
🎯 Targets: $604.25, $603.37
📜 $608 Call 12/31
Entry: Breakout and 15 min close OVER $607, entry off retest of support
🎯 Targets: $608, $608.50
SPY will drop ... until Christmas.This is going to be quick.... busy right now.
You can look at my other charts to see the explanation of why I use the Heikin Ashi candlesticks.
The SPY is going to drop until Christmas. You can see the indicators on the daily chart shifting towards a downward move.
I believe you will see a zig zag move with this drop.
This week the market will drop.
Starting Monday you will see it move slightly upward as there will be indecision/positivity around the Fed Decision.
After the Fed Decision, the market will drop again until Christmas. This drop will be about the same distance as the drop this week.
The targets I have laid out are on the Chart with the drop hitting around 593 before going back up at the beginning of next week to hit about 601.
(It may not go up this high with the bounce up; it could hit a different level. I will update this post of the different levels it could hit if it hits my 593 target.)
After the Fed decision, it will drop until approximately 585.
I could be slightly off on any one of my targets. And if it doesn't hit 593 by the end of this week, all my other predictions will shift.
Happy trading.
Grinch drop, Santa popSPY is at it's 2 year trend channel resistance level. There's very little upside reward left. There's a greater downside risk. The Grinch may try to steal Christmas with a temporary SPY drop towards support. But then a Santa Claus rally will pop SPY back up to it's resistance level.
SPY 2 year trend channel levels:
resistance = 605
pivot = 585
support = 565
trade ideas:
1) collar strategy
hold 100 shares
sell 585 call
buy 605 put
2) buy 605 put
3) short call spread
sell 585 call
buy 605 call
4) long put spread
buy 605 put
sell 585 put
SPY options data:
12/6/24 expiry
Put Volume Total 219,329
Call Volume Total 125,297
Put/Call Volume Ratio 1.75
Put Open Interest Total 750,130
Call Open Interest Total 233,054
Put/Call Open Interest Ratio 3.22
12/13/24 expiry
Put Volume Total 69,042
Call Volume Total 43,893
Put/Call Volume Ratio 1.57
Put Open Interest Total 317,687
Call Open Interest Total 228,869
Put/Call Open Interest Ratio 1.39
12/20/24 expiry
Put Volume Total 336,702
Call Volume Total 139,171
Put/Call Volume Ratio 2.42
Put Open Interest Total 3,273,537
Call Open Interest Total 1,426,800
Put/Call Open Interest Ratio 2.29
12/27/24 expiry
Put Volume Total 13,062
Call Volume Total 14,931
Put/Call Volume Ratio 0.87
Put Open Interest Total 72,224
Call Open Interest Total 59,538
Put/Call Open Interest Ratio 1.21
1/17/25 LEAPS
Put Volume Total 191,268
Call Volume Total 63,574
Put/Call Volume Ratio 3.01
Put Open Interest Total 2,376,812
Call Open Interest Total 855,976
Put/Call Open Interest Ratio 2.78
(GET READY) The expected move for FOMC in SPYThe expected move for FOMC in SPY
After making new all-time highs on Friday, December 6, we have been consolidating back to the 30 minute 200 moving average. You could see how we’ve been chopping around sideways along the 35 EMA back to the 30 minute 200 moving average. So we are just above that 30 minute 200 moving average yesterday we closed directly above it with the 35 EMA directly above that and so far this morning we are above those two levels. We are in that down gap from Monday, going into Tuesday so possible level of resistance around 607 and then we have the one hour 200 average at the very bottom of the implied move.
So the implied move is between 600 to 609 and on tomorrow’s contract for Thursday 599 to 610.
I’m taking a little short break from making videos because they are very time-consuming and in December in this month with everything going on I just don’t have time to make them, but I will be getting back to that in January and for now I’ll still be posting these still charts
GL, y’all
SPY Technical Analysis (TA) and GEX Analysis for Dec. 181. Daily Chart (1D)
* Trend: SPY is trading within a well-established upward channel. The price recently hit resistance at the upper channel line (~609), suggesting overbought conditions.
* Support Levels:
* 590: Key short-term support, aligned with the lower EMA support.
* 577-571: Major support zone; a breakdown here signals a bearish shift.
* Resistance:
* 609-610: Upper trendline resistance. SPY has failed to hold above this range.
* Indicators:
* MACD: Bearish divergence forming as momentum weakens while price pushes higher.
* Volume: Strong volume uptick at recent highs, suggesting possible distribution.
Bias: The daily chart signals caution, with a potential pullback to 602-604 (middle channel) or further to 590.
2. Hourly Chart (1H)
* Price Action: SPY shows rejection from the upper resistance (~609) and is trending downward towards key intraday support at 602-603.
* Support/Resistance:
* Support: 602 (highest PUT Wall in GEX), 604 (confluence of EMA and PUT Wall).
* Resistance: 607-608 (CALL resistance).
* Indicators:
* MACD: Bearish crossover; momentum remains negative.
* Trendlines: SPY is testing lower channel support on this timeframe.
Bias: SPY is likely to remain range-bound between 603-607 for now. A break below 602 could accelerate downside pressure.
3. GEX Analysis
* Key GEX Levels:
* 607: CALL Resistance (1.25%). Likely an upper cap.
* 603: Highest negative NETGEX/PUT Support. This level is critical; breaking below it increases bearish momentum.
* 602: Second PUT Wall (-32.62%), significant downside target.
* Options Oscillator: Indicates PUT dominance with 56.9% Puts versus Calls.
* IVR (Implied Volatility Rank): 16.7 — IV remains low, suggesting minimal volatility expectation.
GEX Insight: The options market suggests 603 is the battleground. Bulls need to reclaim 607 to push higher, while bears will attempt to defend the PUT-heavy zones at 603-602.
Trade Outlook for SPY
* Bearish Setup: Look for rejection at 605-607. A breakdown below 603 can target 602, with potential downside extension to 600.
* Bullish Setup: A strong rebound off 603 with volume could signal a push back to test 607. Break above 608 confirms bullish continuation.
Conclusion
SPY remains at a critical juncture near upper resistance. Monitor 603 closely, as a break or bounce here will dictate short-term direction. Options GEX levels highlight a PUT-heavy market, favoring bearish pressure unless bulls reclaim higher ground.
This analysis is for educational purposes only and does not constitute financial advice. Always manage your risk.
SPY Analysis: Daily & 1-Hour Chart With GEX Analysis for Dec. 17Current Sentiment:
* SPY appears range-bound but leaning bearish near resistance on the Daily chart.
* The 1-Hour chart shows SPY retracing from its recent high around 609, struggling to hold above key support levels.
Key Technical Levels
Daily Chart:
* Resistance: 609.97 (recent high).
* Support: 602.81, 598.40.
* Trend: Uptrend intact, but momentum is stalling. Watch for a potential break below 602.
1-Hour Chart:
* Resistance: 607, 608.41 (GEX Call Wall and prior highs).
* Support: 605, 604 (key demand area), and 602.13 (next major support).
* SPY is showing lower highs on the hourly chart, indicating a short-term bearish bias.
Options Gamma Exposure (GEX)
* Call Wall: 608 (2nd Wall) and 611 (upper wall).
* Put Wall: 604 (3rd PUT Wall).
* HVL (High Volatility Level): 603, suggesting potential support if tested.
* GEX Overview:
* Puts dominate with 40.2%, showing hedging pressures.
* IVR (Implied Volatility Rank): 10.8, IVx avg 12.9% – lower volatility indicates slower moves.
Scalp and Swing Trade Suggestions
For Scalp Trade:
* Short Bias: If SPY fails to reclaim 607, consider a PUT scalp targeting 605.
* Entry: Below 607 with confirmation.
* Target: 605, 604.
* Stop-Loss: Above 608.50.
For Swing/Day Trade:
* Put Option:
* Strike: 605 PUT (Weekly Expiry).
* Entry: On rejection at 607-608 levels.
* Target: 602-604 zone.
* Stop-Loss: Above 609.
* Call Option:
* Strike: 608 CALL if SPY breaks and holds above 608.
* Target: 611-612 zone.
* Stop-Loss: Below 606.
Conclusion:
SPY is showing signs of weakness near resistance, with a short-term bearish setup. A rejection at 607-608 could trigger PUT opportunities toward 602-604. Keep an eye on the 603 HVL for potential support and monitor price action carefully.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and manage your risk before trading.
SPY Technical Analysis and GEX Insights for Dec. 16 1. Technical Analysis (Daily & 1-Hour Timeframes)
Daily Chart (Longer Timeframe):
* Trend: SPY remains in an upward channel but is showing signs of exhaustion near the upper trendline.
* Resistance:
* 609–610: This is the upper channel resistance where price may face selling pressure.
* Support:
* 586.15: Immediate support level from previous consolidation.
* 580: A key zone to watch if selling accelerates.
* Indicators:
* MACD: Bearish divergence on the daily, signaling potential weakness.
1-Hour Chart (Shorter Timeframe):
* Trend: SPY is currently pulling back after rejecting a supply zone near 609.
* Resistance:
* 608–609: The major resistance area.
* Support:
* 602: Closest support level.
* 597.28: Critical support aligned with GEX levels.
* MACD: Bearish crossover, suggesting downside momentum in the short term.
2. GEX Analysis
Key GEX Levels:
* CALL Walls (Resistance):
* 606: 2nd CALL Wall, acting as significant resistance.
* 610: 3rd CALL Wall, the upper boundary of price action.
* PUT Walls (Support):
* 604: 2nd PUT Wall – current area of congestion and potential bounce zone.
* 600: Highest negative GEX, providing the strongest support below.
Options Oscillator Insights:
* IVR: 7.3% – Low implied volatility makes options cheap for directional trades.
* PUTs: 47.7% activity signals notable bearish positioning, adding downside risk.
3. Trade Setups
Bearish (Short Bias):
* Entry: Near rejection at 606–609 resistance.
* Target: First target at 602, extended target at 600 PUT support.
* Option Strategy:
* Buy PUT options (604 strike or ATM PUTs).
* Use a Bear Put Spread: Buy 605 PUT, Sell 600 PUT to reduce premium cost.
Bullish (Bounce Play):
* Entry: If SPY holds above 602–604 PUT Wall support with bullish volume confirmation.
* Target: 606–609 CALL resistance.
* Option Strategy:
* Buy CALL options (604 strike, 1-week out).
* Use a Bull Call Spread: Buy 603 CALL, Sell 608 CALL for a cheaper setup.
Directional Bias for This Week:
* SPY leans bearish in the short term if it fails to reclaim 606–609. Watch for a potential drop toward 602–600 PUT support.
* A bullish bounce could occur at 602 if volume confirms support strength.
Short Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
Morning Overview: FED Decision W/ Sticky InflationThe FED is set to make a decision on interest rate cuts todays. The market has them priced in already and I doubt the FED wants to surprise markets. Going forward into 2025 I don't think they cut in Q1 for this reason.
This video covers:
* patterns in tech stocks that resemble some climatic activity.
* patterns in consumer stocks
* Trades I currently in
* One Good Trade series trades
* Possible setups for today
Deep short for SPY? My target is at 510, here why!Christmas Eve Rally? - Not quite.
Trump Trade? - Hardly.
So, what’s driving the market higher, and where is SPY headed next?
Investor sentiment surrounding the upcoming U.S. presidential elections seems to echo the euphoria of 2016, raising hopes for a similar post-election rally. Themes like tax cuts, protectionism, and trade wars are fueling optimism for U.S. equities.
But let’s not get carried away. The economic and geopolitical landscapes today are vastly different, and so is the narrative. The “Superman” Trump of 2016 no longer holds the same sway over markets.
The post-COVID stock market rally was buoyed by an unprecedented flood of liquidity. Based on our analysis, those excess dollars are nearly spent. Furthermore, the global economic outlook bears little resemblance to the relatively stable environment of 2016.
While the Democrats’ recent performance metrics provide Powell with ample material to champion a “resilient economy,” the bigger question remains: Is the U.S. stock market truly worth its current valuations?
We’ll delve into the overvaluation of the #SPY and #SPX indices in greater detail in the coming updates.
For now, you can pay close attention to technical analysis, identifying key peaks and potential correction levels.
SPY Bull on EX Div WeekSPY Bull on EX Div Week, and then on Friday dump as all stocks do on ex div date
SPY's Potential Reversal at New York OpenThe market is always moving towards stop loses. Price is always seeking them out and the
Market-Description:
In this analysis, we're observing the SPY chart on a 15-minute timeframe as it approaches the New York Open on Monday. The chart illustrates a potential retracement back up towards the most recent bearish Fair Value Gap (FVG), which is creating liquidity for the market to potentially move further down.
Key Observations:
Bearish Fair Value Gap: Identified as a critical zone where price may react, providing a potential entry point for short positions.
Liquidity Creation: The retracement towards the FVG is seen as a mechanism for liquidity creation, setting the stage for a possible downward move.
Trend Break and Reversal: After the initial downward move, we anticipate a break in the trend, leading to a reversal back towards the upside.
This prediction is based on past observations and aims to provide insights into potential market movements. Traders should watch for any current Fair Value Gaps and monitor price action closely as the market unfolds.
Spy Short 3% CorrectionAlright Guys I Was About to drop all my short positions , but after looking at the bigger picture i can't!!! Its a short for me.. Be advised with the New Narrative Trend That's Out Right now with my Content, First Price Target For spy will be 600 and 2nd Target will be 595!!!
1st short target SPY $600
2nd short target SPY $595
QQQ 1st short target $520
QQQ 2nd short target $514
and always goodluck traders and Happy Holidays
A Bullish Setup with Fair Value Gap in Play
Time to Tap Into the Reversal?
As we approach a critical juncture on SPY, the charts are presenting a fascinating opportunity for those tuned into price action and market structure. The recent price behavior suggests we may be at the cusp of a significant reversal, and a potentially bullish setup is starting to take shape. Let’s dive into why I believe SPY is primed to tap into the fair value gap (FVG) above, and why this may be the perfect time to look for long positions.
The Reversal Is in the Air
After a recent pullback, we’re seeing key technical indicators point toward a possible reversal. Price action has been testing critical support levels, and momentum is showing signs of slowing down, setting up the conditions for a bullish pivot. But what truly stands out here is the fair value gap (FVG) formed below the current price.
For those familiar with the concept, a fair value gap is an area where price has moved too quickly through a range, leaving an imbalance between buy and sell orders. These gaps often get filled as the market seeks to restore equilibrium.
Filling the Fair Value Gap – The Bullish Potential
Looking closely at SPY’s chart, we’re seeing the potential for price to either tap into the fair value gap below or close above it, signaling a strong move to the upside. If we see a push past recent resistance levels, this could trigger a gap fill on the bullish side, with price aiming for a higher target.
Here’s what we want to watch for:
Reversal Confirmation: A close above the current resistance level would confirm the potential for the bullish move. Look for a clean break and retest to validate the strength of the move.
Fair Value Gap Fill: As mentioned, price may want to fill the gap to restore equilibrium. If this occurs, it could serve as a solid entry point for long positions, with targets set to the upside.
Entry Strategy – Calls Look Attractive
Once the reversal is confirmed and the fair value gap is filled or cleared, it’s time to look for long positions. SPY has a history of making swift moves, and with momentum in our favor, a well-timed entry could provide solid returns. For those who prefer options, consider buying calls as an efficient way to tap into the bullish potential. Look for a strike price near the next significant resistance level to capitalize on the move, and make sure to manage risk appropriately with stop-loss levels.
What to Watch Next
Keep an eye on the following key levels:
Immediate Resistance: The first resistance area to watch will be around . A breakout above this level could signal the start of the bullish leg.
Fair Value Gap Zone: If SPY taps into the fair value gap, expect a pullback followed by a potential rise. The gap filling could set the stage for a more sustainable move upward.
Wrapping It Up
The current setup on SPY is compelling, and it’s important to stay vigilant as price action unfolds. With a potential reversal on the horizon and the fair value gap acting as a key technical level, the next move could be a strong one. Be ready to take advantage of the upside if we see a confirmation of this bullish shift.
As always, use proper risk management, and stay informed of any macroeconomic events that could influence market sentiment. Happy trading, and let's see where SPY takes us next!
SPY/QQQ Plan Your Trade For 12-12: Breakaway PatternToday's video goes into detail related to the general SPY/QQQ trending and the continued potential for a price Anomaly Event.
It is likely that the markets continue a Santa Rally phase - attempting to push higher throughout the end of 2024 and into 2025.
I want everyone to understand that the anomaly event I keep suggesting may happen is an outlier event. It would be driven by some news, political, financial or other type of market event.
If that event does not happen, then the markets will likely continue to push higher and higher.
So, remember, the markets want to push higher into the typical Santa Rally. My Anomaly event would be a potential outlier event - driving a moderate pullback in price.
Gold and Silver should move into a moderate topping pattern today - possibly pulling downward a big. This would be a goo setup for the next rally phase higher. That rally may come tomorrow or into early next week.
Bitcoin is trapped within a consolidation range. The rally yesterday was nice to see, but right now we are seeing Bitcoin struggle below resistance. So, we still need to be cautious about rolling downward. Yet, the general trend for Bitcoin right now is upward.
Get Some.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
SPY Wave % still in Progress target date forming The chart is the updated wave structure for the spy . if this is correct we should see a small shakeout in wave B of 5 . I will sit back in 100% cash and be Patient best of trades WAVETIMER
SPY Market Setup: Key Levels $ Options Strategy for Dec.12, 2024Overview of GEX Levels
* Resistance Levels:
* $609: GEX9 and 3rd Call Wall, representing strong resistance where sellers may emerge.
* $607: 2nd Call Wall and the highest positive NETGEX, marking a critical resistance level.
* Support Levels:
* $605: GEX7, providing a significant support level for pullbacks.
* $603: HVL (Highest Volume Level), a pivotal support zone. Holding above this level indicates bullish strength.
* $602: GEX support zone, with $601 acting as the final support level.
Options Oscillator Indicator Insights
* IVR (Implied Volatility Rank): 6.6 (low volatility rank).
* Suggests subdued implied volatility, favoring non-directional strategies or narrow price ranges.
* IVx Avg: 11.5.
* Current implied volatility is near average levels, suitable for premium-selling strategies.
* Put$/Call$ Ratio: 45.9% skewed toward puts.
* Reflects bearish sentiment, with more traders hedging or positioning for downside risk.
Technical Setup
* SPY is trading within a tight range, with resistance at $607 and support near $605 and $603. A break above $607 could lead to a retest of $609, while a drop below $603 may open the door to bearish momentum toward $602 and $601.
Options Trading Strategy
* Bullish Play:
* Buy SPY Dec 15, 2024, $607 Calls if price breaks and holds above $607. Target: $609; Stop: $605.
* Neutral Play:
* Sell SPY Dec 15, 2024, $607 Calls and buy $610 Calls (credit spread) if price consolidates below $607, taking advantage of limited price movement.
* Bearish Play:
* Buy SPY Dec 15, 2024, $605 Puts if price falls below $603 with strong volume. Target: $602; Stop: $606.
Conclusion
SPY is consolidating near critical levels, with $607 acting as the key pivot for tomorrow's price action. Options sentiment and GEX levels suggest caution, with potential for both upside breakouts and downside pullbacks. Traders should focus on breakout or rejection signals around $607 and $603 for actionable setups.
Disclaimer: This analysis is for educational purposes only.
