SPY has its dividend date today so we will see the price on the chart adjusted lower to reflect that payout. I do continue to believe, with yesterday as an example, the market will melt higher toward the end of the year with a few days of small pull backs.
This said In recent history it has been foolish to bet against the SPY on a Friday. Also, with the buying at the end of the day yesterday and the buying in the premarket early I will look for a clear move up by the SPY supported by market indicators like increased buying volume.
If I see this it will trigger a buy to open followed by sell to close call option move today. However, if the SPY fades down at the open I’ll be patient and look for a bounce. In order for this trading plan to be in play SPY must remain trading above a support level near $319.30.
Resistance: 320, 320.10, 320.25 Support: 319.30, 319.56, 319.70
Today’s Trade of The Day is SPY December 27 320 Calls
