We saw a surge in the SPY last night to new all-time highs. The SPY is currently sitting at 332.28 in the premarket having broken through the resistance line of 332.18 which was the high of the day yesterday and used it as support a few times.
In the premarket charts at the moment we see that the 10 moving average line is below the 20 moving average line on the 5 , but above it on the 10, and 15-minute chart. A mixed signal. In addition, buying volume is significantly lower at this point than it was yesterday. The SPY has been trending higher and It has shown the potential to move higher given what we have seen of late. We currently are looking at a gap up of 1 point. So the SPY is in a tricky place to trade having made new highs, but light volume.
Where it opens will make a big difference. However, with two out of three indicators pointing up along with futures, that seems the safest choice today.
Resistance: 332.40, 332.64, 332.77
Support: 332.18, 332.07, 331.89
Wall Street will be eyeing SPY January 27 333 Calls
