The markets will start the day on its back foot as S&P futures pull back to the large gamma strike at 3600. OPEX is this Friday, so the thoughts are for a pin at this level. Breadth is improving as more stocks participate in the rally back to all-time highs.
“Our major risk indicator is the gamma flip level which remains well below current SPX prices at 3500. We have a robust amount of positive gamma in the S&P ( ~$1.9bn SPY+SPX) which should be supportive of prices into 11/20.”Brent at Spotgamma
SPY shows relative strength as RSI trends higher and above 50. MACD is above its signal line and trending higher. Volume was above average.
SPY price action is also above the major (VBP) volume by price histogram on the left side of the chart. This is major support.
We anticipate today’s dip will be an opportunity. Watch for buyers to confirm institutions are supporting the market.
NYMO – Breadth Improving
Breadth has been striking a more bullish tone over the past few trading days, so we anticipate dips will be bought going into November OPEX.
Note: Tesla (TSLA) was added to the S&P500. The stock is trading up to more than 50pts (+/- 460.00). ETFs following the S&P500 will need to add TSLA.
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.