The market made a big move higher overnight, again and is currently sitting at 331.84 haveing just broken through resistance at 331.66. In the premarket charts at the moment we see that the 10 moving average line is above the 20 moving average line on the 5 minute chart int the premarket. However below in the 10 and and above in the 15 minute charts currently. However, we are NOT seeing the significant buying volume we saw in premarket at this time yesterday .
The SPY has been trending higher and It has shown the potential to move higher given what we saw the past several days. Still, recently when we have gapped up like this in past sessions, with low buying volume there has been a pullback, a bounce off support, then a run. I believe the SPY could VERY easily pull back this morning before possibly continuing higher. You may choose to play this pullback with a put option. Feel free.
I’m looking for that higher move but I will show patience. If it drops, it might happen quickly right at the open, if that happens, I would wait for a bounce off support or if it moves up or just moves sides ways I’ll look for buying volume to confirm my decision.
Resistance: 331.89, 331.95, 332 Support: 331.66, 331.47, 331.32 Today’s Trade of The Day is SPY January 22 333 Calls.
