Futures are down slightly this morning. The SPY is currently sitting at 333 after having just touch on 334 a few minutes ago in the premarket. In the premarket charts at the moment we see that the 10 moving average line is above the 20 moving average line on 5, and the 10 and touching on the 15 minute charts. So the direction of the next half hour will be important. Yet the buying volume has really surged this morning but price has Yo-yo ed dramatically after the very positive Jobs report at 8:30.
After the full point swing in less than 5 minutes after the very positive jobs report it will be hard at this point in the morning to make a very confident call in the direction of the SPY. Because 332.40 has set itself up as support this morning, I’ve decided to go with calls because we are above the daily moving averages and we have positive economic data. There seems to be some panic of some sort right now with this price action but I hope that settles. If the SPY continues to fall at the open I would wait for a reversal off a support line or if it just moves sides ways.
In order for this trading plan to be in play SPY must remain trading above 332.40. If I see this it would trigger a buy to open followed by sell to close CALL option move today.
Resistance: 333.12, 333.28, 333.50
Support: 332.71, 332.51, 332.40
Today’s Trade of The Day is SPY February 14 334 CALLS