1. Key Levels
* Resistance Levels:
* $594.00: Immediate resistance level based on recent price action.
* $600.00: Psychological resistance and critical test zone.
* $608.50: Longer-term resistance from prior highs.
* Support Levels:
* $588.00: Current consolidation support zone.
* $582.30: Intermediate support level based on prior rejections.
* $577.74: Major structural low and critical support from the recent bounce.
Observations and Price Action
1. Trend:
My Thoughts on SPY’s Direction
* Bullish Bias: SPY is likely to retest $594.00 and potentially break higher toward $600.00 if buying momentum continues.
* Bearish Risks: If $594.00 holds as resistance, a pullback to $588.00 or even $582.30 could occur.
I lean slightly bullish, but a breakout above $594.00 is essential for further upside. Watch for rejection signals if SPY struggles to clear this level.
Trade Scenarios
Bullish Scenario:
* Entry: On a breakout above $594.00 with strong volume.
* Targets:
* Short-Term: $600.00.
* Extended: $608.50.
* Stop-Loss: Below $592.00 to minimize risk.
Bearish Scenario:
* Entry: On rejection at $594.00 or breakdown below $588.00.
* Targets:
* Short-Term: $582.30.
* Extended: $577.74.
* Stop-Loss: Above $595.00 for rejection trades or $589.50 for breakdown trades.
Key Focus Areas
* $594.00 Resistance: Watch for a breakout or rejection.
* Volume Confirmation: Ensure volume aligns with the direction of the move.
* Momentum Shift: Monitor the Stochastic RSI for signs of a reversal or continuation.
Conclusion
SPY is consolidating near a critical resistance level at $594.00. A breakout would open the door to $600.00, while rejection could lead to a pullback toward $588.00 or lower. The direction tomorrow will largely depend on how SPY reacts to the $594.00 level.
-----------
Option Trading Scalping and Long/Short Strategy for SPY
------------
1. Scalping Strategy for Options
Key Observations from GEX Levels and Chart
* Resistance Levels:
* $593.00: Strong resistance, aligns with the 3rd Call Wall (53.16% GEX).
* $598.00: Another key resistance from the 2nd Call Wall.
* $600.00: Psychological resistance and CALL Resistance level (93.35%).
* Support Levels:
* $587.00: High Volume Level (HVL) and critical support zone.
* $583.74: Highest negative gamma exposure (Put Support).
* $577.74: Recent swing low and major structural support.
* Options Oscillator Insight:
* IV Rank is moderate (27.6%), indicating stable implied volatility.
* Puts outweigh Calls (48.3%), showing slight bearish sentiment.
Scalping Call Options (Bullish Setup):
* Entry: If SPY breaks above $593.00 with volume confirmation.
* Target: $598.00 (short-term target) and $600.00 (extended target).
* Stop-Loss: Below $592.00 to manage risk.
Why It Works: The breakout above $593.00 aligns with gamma-driven resistance at $598.00 and $600.00, signaling momentum to the upside.
Scalping Put Options (Bearish Setup):
* Entry: On rejection at $593.00 or breakdown below $587.00.
* Target: $583.74 (short-term target) and $577.74 (extended target).
* Stop-Loss: Above $593.50 for rejections or $588.00 for breakdown trades.
Why It Works: Failure to hold $587.00 would push SPY toward negative gamma zones, with increased bearish pressure targeting the next support levels.
2. Long/Short Strategy
Long Strategy (Bullish Case):
* Entry: Above $593.00 with sustained price action and volume.
* Targets:
* Short-Term: $598.00.
* Extended: $600.00.
* Stop-Loss: Below $591.00 to minimize downside risk.
Why It Works: Breaking $593.00 indicates bullish momentum with gamma resistance weakening as the price moves higher.
Short Strategy (Bearish Case):
* Entry: On rejection at $593.00 or a confirmed breakdown below $587.00.
* Targets:
* Short-Term: $583.74.
* Extended: $577.74.
* Stop-Loss: Above $594.00 for rejection trades, or $588.50 for breakdown trades.
Why It Works: A failed breakout or breakdown aligns with bearish sentiment from the options flow, targeting downside gamma zones.
3. Additional Notes
* Volume Confirmation:
* Monitor volume spikes near $593.00 for breakouts or rejections.
* Timeframe:
* Use the 1-minute or 5-minute chart for scalping.
* Strike Selection:
* Focus on at-the-money (ATM) options with 7–14 DTE for scalping.
Conclusion
* Bullish Scenario: Breakout above $593.00 targets $598.00 and $600.00.
* Bearish Scenario: Rejection at $593.00 or breakdown below $587.00 targets $583.74 and $577.74.
Keep a close eye on price action, volume, and gamma levels to guide your entries and exits effectively. 🚀
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please trade responsibly and manage your risk accordingly.
* Resistance Levels:
* $594.00: Immediate resistance level based on recent price action.
* $600.00: Psychological resistance and critical test zone.
* $608.50: Longer-term resistance from prior highs.
* Support Levels:
* $588.00: Current consolidation support zone.
* $582.30: Intermediate support level based on prior rejections.
* $577.74: Major structural low and critical support from the recent bounce.
Observations and Price Action
1. Trend:
* SPY bounced strongly from $577.74, creating a higher low, indicating short-term bullish momentum.
* Price is consolidating under $594.00, which could act as a key pivot point for the next move.
2. Stochastic RSI:
* The Stochastic RSI is entering overbought territory, suggesting potential slowing momentum or a pullback before another leg up.
3. Volume:
* The recent move off $577.74 was accompanied by rising volume, signaling buying interest at key support.
My Thoughts on SPY’s Direction
* Bullish Bias: SPY is likely to retest $594.00 and potentially break higher toward $600.00 if buying momentum continues.
* Bearish Risks: If $594.00 holds as resistance, a pullback to $588.00 or even $582.30 could occur.
I lean slightly bullish, but a breakout above $594.00 is essential for further upside. Watch for rejection signals if SPY struggles to clear this level.
Trade Scenarios
Bullish Scenario:
* Entry: On a breakout above $594.00 with strong volume.
* Targets:
* Short-Term: $600.00.
* Extended: $608.50.
* Stop-Loss: Below $592.00 to minimize risk.
Bearish Scenario:
* Entry: On rejection at $594.00 or breakdown below $588.00.
* Targets:
* Short-Term: $582.30.
* Extended: $577.74.
* Stop-Loss: Above $595.00 for rejection trades or $589.50 for breakdown trades.
Key Focus Areas
* $594.00 Resistance: Watch for a breakout or rejection.
* Volume Confirmation: Ensure volume aligns with the direction of the move.
* Momentum Shift: Monitor the Stochastic RSI for signs of a reversal or continuation.
Conclusion
SPY is consolidating near a critical resistance level at $594.00. A breakout would open the door to $600.00, while rejection could lead to a pullback toward $588.00 or lower. The direction tomorrow will largely depend on how SPY reacts to the $594.00 level.
-----------
Option Trading Scalping and Long/Short Strategy for SPY
------------
1. Scalping Strategy for Options
Key Observations from GEX Levels and Chart
* Resistance Levels:
* $593.00: Strong resistance, aligns with the 3rd Call Wall (53.16% GEX).
* $598.00: Another key resistance from the 2nd Call Wall.
* $600.00: Psychological resistance and CALL Resistance level (93.35%).
* Support Levels:
* $587.00: High Volume Level (HVL) and critical support zone.
* $583.74: Highest negative gamma exposure (Put Support).
* $577.74: Recent swing low and major structural support.
* Options Oscillator Insight:
* IV Rank is moderate (27.6%), indicating stable implied volatility.
* Puts outweigh Calls (48.3%), showing slight bearish sentiment.
Scalping Call Options (Bullish Setup):
* Entry: If SPY breaks above $593.00 with volume confirmation.
* Target: $598.00 (short-term target) and $600.00 (extended target).
* Stop-Loss: Below $592.00 to manage risk.
Why It Works: The breakout above $593.00 aligns with gamma-driven resistance at $598.00 and $600.00, signaling momentum to the upside.
Scalping Put Options (Bearish Setup):
* Entry: On rejection at $593.00 or breakdown below $587.00.
* Target: $583.74 (short-term target) and $577.74 (extended target).
* Stop-Loss: Above $593.50 for rejections or $588.00 for breakdown trades.
Why It Works: Failure to hold $587.00 would push SPY toward negative gamma zones, with increased bearish pressure targeting the next support levels.
2. Long/Short Strategy
Long Strategy (Bullish Case):
* Entry: Above $593.00 with sustained price action and volume.
* Targets:
* Short-Term: $598.00.
* Extended: $600.00.
* Stop-Loss: Below $591.00 to minimize downside risk.
Why It Works: Breaking $593.00 indicates bullish momentum with gamma resistance weakening as the price moves higher.
Short Strategy (Bearish Case):
* Entry: On rejection at $593.00 or a confirmed breakdown below $587.00.
* Targets:
* Short-Term: $583.74.
* Extended: $577.74.
* Stop-Loss: Above $594.00 for rejection trades, or $588.50 for breakdown trades.
Why It Works: A failed breakout or breakdown aligns with bearish sentiment from the options flow, targeting downside gamma zones.
3. Additional Notes
* Volume Confirmation:
* Monitor volume spikes near $593.00 for breakouts or rejections.
* Timeframe:
* Use the 1-minute or 5-minute chart for scalping.
* Strike Selection:
* Focus on at-the-money (ATM) options with 7–14 DTE for scalping.
Conclusion
* Bullish Scenario: Breakout above $593.00 targets $598.00 and $600.00.
* Bearish Scenario: Rejection at $593.00 or breakdown below $587.00 targets $583.74 and $577.74.
Keep a close eye on price action, volume, and gamma levels to guide your entries and exits effectively. 🚀
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please trade responsibly and manage your risk accordingly.
Dagangan aktif
SPY at Critical Levels: Insights for Today's Market Action December 26Analysis: SPY is trading near a critical zone, showing signs of consolidation after a recent bounce off support. Key observations:
* Trend Analysis: A short-term bullish trend is evident, but a recent rejection near $600 suggests caution.
* Indicators: The 9 EMA and 21 EMA are converging, indicating a potential inflection point. MACD shows decreasing momentum, with a bearish crossover looming.
* Volume: Declining volume indicates indecision among market participants.
Key Levels to Watch:
* Resistance: $599.80 and $600.50 (near recent highs).
* Support: $598.40 and $597.80 (previous lows and trendline support).
Trade Scenarios:
* Bullish Scenario: If SPY breaks above $599.80 with volume, targets could extend to $601 or higher. Entry near $600 with a stop-loss at $598.60 is prudent.
* Bearish Scenario: A break below $598.40 might lead to a test of $597 or lower. Short entry near $598.20 with a stop-loss at $599.50 is suggested.
GEX Analysis:
* Gamma Exposure (GEX):
* High GEX levels around $600 suggest market makers could cap upward movement.
* Negative GEX at lower levels implies increased volatility below $598.
* Options Activity: Call dominance near $600 while puts dominate below $598, indicating hedging behavior.
Actionable Suggestions:
* Watch $599.80 for a breakout or $598.40 for a breakdown.
* Monitor MACD for momentum confirmation and EMA levels for trend clarity.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.