Futures are higher (4274.00) this morning after “volatility picked up om Monday, with the S&P dropping 70pts to close at 4258. The low on the day was 4233, just breaching the major support line of 4240 outlined in the AM report.
S&P500 – SPX
Unusul activity picked up throughout the day.
HFTalerts tweeted “machines were buying/covering just after noon, with 733 issues being bought.”
Brent noted “curious flow, with intraday options flow registering a very strong, positive delta bias. This indicates that traders were buying calls and selling puts despite the weakness.
There was no sign of major put buying in the SPX.
Indicators recorded a rolling delta measurement for every option that traded in the S&P500 on Monday. It sharply positive up until 11AM, at which point it shifted to “moderately” positive for the remainder of the day.” Spotgamma
We also noted since February, every test of the SPX 50d moving average was met with a bullish day following. If Tuesday prints a bullish close, that will be the 8th occurence.
Stochastic is triggering a bullish signal this morning on the 60 minute time frame. MACD will turn and cross as a function of price action, so we have a potential rally off Monday’s low.
Levels to watch today were previously noted with 4300, 4350, and 4400 major levels overhead.
TICK cumulative indicator also turned green at the end of Monday trading.
Down volume was 8.8:1. That needs to flip.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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