Looks like the bull rally on SPY is finally going to come to an end today. We saw a pullback this weekend in the SPY after closing Friday at new all-time highs.
The SPY is currently sitting at 330.85 in the premarket having bounced off our resistance line of 330.93 a few times and it seems to want to break through it. 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, 10, and 15-minute charts currently and the at this point today is much higher than it was Friday.
The SPY has been trending higher and It has shown the potential to move higher given what we saw the past several days/weeks. When we have gapped down like this in the recent past SPY has run up to start the day and I believe the SPY could very easily do this again today given our indicators. If It drops for some reason I would wait for a bounce off support or if it just moves sides ways I’ll look for buying volume to confirm my decision. In order for this trading plan to be in play SPY must remain trading above the support level near $330.46.
However, Ideally, I’d like to see it break through resistance at 330.93. If I see this it would trigger a buy to open followed by sell to close CALL option move today.
Current resistance: 330.93, 331.05, 331.18
Support: 330.70, 330.46, 330.25
A potential trade Wall Street may be looking today will be SPY January 27 332 Calls