Wall Street looking to bounce back with green futures: SPY calls


Futures are up this morning. The SPY is currently sitting at 324.01 in the premarket.

In pre-market since Friday it has risen but not getting higher than 324.50. In the premarket charts at the moment we see that the 10 moving average line is slightly above the 20 moving average line on 5,10 and 15 minute charts.

Additionally, volume is about the same as Friday. The SPY seems to be headed for a gap up here of almost a point. Given the TRIN end of day Friday, the futures currently and the moving averages at the moment, Wall Street may be eyeing for a move up today if the SPY doesn’t open too high.

If it jumps right away, the we know for sure that the gap will be filled today. But if it drops, I would wait for a reversal off support line or if it just moves sides ways I’ll look for buying volume to confirm my decision. 

Volume, like Friday, will be a big indicator today of where we are going. In order for this trading plan to be in play SPY must remain trading above that key support level near 322.50. If I see this it would trigger a buy to open followed by sell to close CALL option move today.

Finally, know that because of recent volatility, these options will be more expensive than usual. Resistance:  324.11, 324.23, 324.50 Support: 323.63, 323.33, 323 Today’s Trade of The Day is SPY February 7 325 CALLS


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