Markets could rebound today: SPY September 30, 300 Calls

This morning’s scan is easier than yesterday’s. Usually, Mondays are some of the trickiest days over the years. There is mixed news here as of right now. While indicators are pointing north, SPY is trading very, very close to SPY 300 resistance. Roughly 75 cents away right now as I’m typing. A quick pullback toward the 299 area before the opening bell would certainly be welcome! Regardless, Wall Street will be looking for a clear signal for a buy to open/sell to close call option alert. The ideal setup here is an Inverse Head and Shoulders. It is the most reliable and most simple read on a chart for a call option alert, and who doesn’t love simple! In order for this move to be actionable, I would need SPY to hold 299 support. Below that, and we may see a draw down into yesterday’s trading range within the 297 area.

Again, Wall Street needs 299 support to hold today. That could create for a move to (or maybe above) SPY 300, in which case the next resistance area we’ll want to pay attention to is SPY 302.50.

Resistance: 299.50, 299.59, 300

Support: 299.22, 299, 298.50