Options volume going into Friday OPEX has price action stuck in a range, as open interest builds around the 280/2800 strike. Volatility (VIX) is persistent as Friday approaches, with jobless claims and economic data dominating the financial headlines today.
“The number of Americans applying for initial unemployment benefits rose by 5.24 million last week, the U.S. Labor Department said Thursday, bringing the number of people laid off over the past month to more than 20 million, in an unprecedented surge in unemployment.
The consensus forecast had been for an increase of 5.105 million.
The number of people already receiving benefits increased to 11.98 million, the report said, up from 7.46 million a week earlier.”
SPY and S&P500 Open Interest
2800, 2900, and 3000 are the largest open interest strikes going into OPEX, with 2800 nearest to current price action. We’re looking for this level to force price action into a range as discussed yesterday.
SPY Daily Chart
We are anticipating that price action will stay inside the range depicted on the chart (red lines), with Open Interest (280) acting as a magnet. In addition, the 9ema crossed through the 21d rendering support as it rises up to meet price action in this zone. As long as SPY stays above the 9/21d we have a short-term bullish bias.
MACD is above its signal line and rising.
This momentum indicator, in addition to RSI, suggests additional support to rising price action, as bulls remain in control.
A reminder: We are favoring the Nasdaq 100 stocks, (NDX/QQQ), as this index outperforms the larger S&P500.
Futures are just below the best levels of the day, with crude and gold trading higher.
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.
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.