The Geo-political uncertainty flared up again last night as I mentioned in the premarket video but has since cooled and now futures are green and in the premarket chart, we see that the 10 moving average line is above the 20 moving average line on the 5,10,15 minute charts.
Still, the SPY is in a tricky spot here because though futures are green there was selling end of day yesterday, still much uncertainty geopolitically and the SPY has moved up so much in premarket it now sits below a resistance line of 323.60 which it has bounced off a few times including in the premarket. It has shown potential to move higher given what we saw the past few days but it’s a tough call here. So I’m going to play straight from our indicators today and look for calls but I’m going to be very choosy before jumping in.
To confirm this move to the upside, I will wait to see solid buying volume at the open. If it opens where it is at the moment this will be a gap up from yesterday and it may look to run or retreat and fill that gap below it. If it drops back to yesterday’s close at 322.73 or lower at 322.50 and then 322.35 at the open, I will wait to see a bounce or inverted head and shoulders pattern before taking the trade. In order for this trading plan to be in play, SPY must remain trading above that key resistance level near $322.30.
Resistance: 323.30, 323.45, 323.63 Support: 323, 322.81, 322.50
Today’s Trade of The Day is SPY January 13 324 Calls
