Futures are up at the moment but so is the VIX. The SPY is currently sitting at 337.80 in the premarket after having moved up from the close yesterday. We are looking at a potential full point gap up. In the premarket charts at the moment we see that the 10 moving average line is above the 20 moving average line on the 10 and the 15 minute charts while touching on the 5. However, we are not seeing the kind of volume this morning I would like to convince me of a strong move.
The big question I have today is does the SPY have enough strength to break out to new highs today and keep going? We aren’t far from that all time high and possible resistance there. Our momentum indicators are pointing higher at the moment but there isn’t much volume at this point to convince me there is weight behind that. So I’m going with puts this morning. If the SPY moves up at the open I would wait for a reversal off a resistance line like 337.85 or 338 or if it just moves sides ways I’ll look for selling volume to confirm my decision.
Finally, know that because of recent volatility, these options will be more expensive than usual.
Resistance: 337.85, 338, 338.13
Support: 337.50, 337.31, 331.13
Today’s potential Trade of The Day is SPY February 24 337 PUTS