Scalping Analysis for SPY:
1. Support and Resistance Levels:
* Immediate support at $594 (key gamma wall and major put support).
* Resistance near $599-$602 (gamma resistance and call wall).
2. Key Indicators:
* 9 EMA & 21 EMA: Price is below both EMAs on the hourly timeframe, suggesting bearish short-term momentum.
* MACD: Early signs of a bullish crossover, indicating potential reversal.
3. Scalping Plan:
* Bearish Scenario:
* Entry: On rejection near $599-$600.
* Target: $594, $591.
* Stop Loss: Above $602.
* Bullish Scenario:
* Entry: Breakout above $599 with strong volume.
* Target: $602, $605.
* Stop Loss: Below $596.
Swing/Day Trading Analysis for SPY:
1. Trendlines:
* SPY is retesting its recent consolidation zone between $594-$599. A decisive breakout or breakdown will define the next trend.
2. GEX Analysis:
* Call resistance at $602-$605 indicates difficulty for bulls in breaching higher levels.
* Strong put support at $594 and $591 highlights a potential floor for the downside.
3. Trade Scenarios:
* Bullish Swing:
* Entry: Above $599 with confirmation or bounce from $594 with support validation.
* Target: $605, $610.
* Stop Loss: Below $592.
* Bearish Swing:
* Entry: Below $594 with retest confirmation.
* Target: $591, $587.
* Stop Loss: Above $596.
Options Play with GEX Insights:
1. High GEX Areas:
* Call Wall: $602, $605.
* Put Wall: $594, $591.
2. Suggested Options Strategy:
* Bullish Play:
* Buy Jan 5th $600 Call if SPY breaks and sustains above $599 with volume.
* Target: Move toward $602-$605.
* Risk: Below $596.
* Bearish Play:
* Buy Jan 5th $590 Put if SPY breaks below $594.
* Target: $591-$587.
* Risk: Above $596.
3. Options Oscillator Metrics:
* IVR (17.2%) suggests reasonable premiums for options strategies.
* Puts skew (65.3%) indicates stronger bearish sentiment near current levels.
Insights:
* SPY is trading at a key pivot level, with strong gamma resistance at $599-$602 and put support at $594. The breakout or breakdown from this zone will likely drive the next significant move.
* Volume Focus: Look for volume confirmation around $594 or $599 to validate the directional move.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade responsibly and manage risk.
1. Support and Resistance Levels:
* Immediate support at $594 (key gamma wall and major put support).
* Resistance near $599-$602 (gamma resistance and call wall).
2. Key Indicators:
* 9 EMA & 21 EMA: Price is below both EMAs on the hourly timeframe, suggesting bearish short-term momentum.
* MACD: Early signs of a bullish crossover, indicating potential reversal.
3. Scalping Plan:
* Bearish Scenario:
* Entry: On rejection near $599-$600.
* Target: $594, $591.
* Stop Loss: Above $602.
* Bullish Scenario:
* Entry: Breakout above $599 with strong volume.
* Target: $602, $605.
* Stop Loss: Below $596.
Swing/Day Trading Analysis for SPY:
1. Trendlines:
* SPY is retesting its recent consolidation zone between $594-$599. A decisive breakout or breakdown will define the next trend.
2. GEX Analysis:
* Call resistance at $602-$605 indicates difficulty for bulls in breaching higher levels.
* Strong put support at $594 and $591 highlights a potential floor for the downside.
3. Trade Scenarios:
* Bullish Swing:
* Entry: Above $599 with confirmation or bounce from $594 with support validation.
* Target: $605, $610.
* Stop Loss: Below $592.
* Bearish Swing:
* Entry: Below $594 with retest confirmation.
* Target: $591, $587.
* Stop Loss: Above $596.
Options Play with GEX Insights:
1. High GEX Areas:
* Call Wall: $602, $605.
* Put Wall: $594, $591.
2. Suggested Options Strategy:
* Bullish Play:
* Buy Jan 5th $600 Call if SPY breaks and sustains above $599 with volume.
* Target: Move toward $602-$605.
* Risk: Below $596.
* Bearish Play:
* Buy Jan 5th $590 Put if SPY breaks below $594.
* Target: $591-$587.
* Risk: Above $596.
3. Options Oscillator Metrics:
* IVR (17.2%) suggests reasonable premiums for options strategies.
* Puts skew (65.3%) indicates stronger bearish sentiment near current levels.
Insights:
* SPY is trading at a key pivot level, with strong gamma resistance at $599-$602 and put support at $594. The breakout or breakdown from this zone will likely drive the next significant move.
* Volume Focus: Look for volume confirmation around $594 or $599 to validate the directional move.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade responsibly and manage risk.
Trade active
SPY Gap Down and Key GEX Levels for Options Trading Today 📉Market Summary
The SPY has opened with a significant gap down, invalidating prior technical analysis. This movement aligns with bearish sentiment, reflecting increased selling pressure. Let’s dive into the updated TA and GEX insights for actionable trading setups.
Technical Analysis for SPY
* Current Price Action: SPY is trading around $589, breaking below key support levels at $590 and $594.
* Indicators:
* The 9 EMA and 21 EMA confirm a strong downtrend.
* MACD shows bearish momentum, with the histogram expanding to the downside.
* Increased volume at lower prices indicates heavy selling pressure.
* Support Levels:
* 588.71: Intraday low and immediate support.
* 577.74: A key level to watch if selling intensifies.
* Resistance Levels:
* 590.80: The first resistance from prior breakdown.
* 594: A critical level for reversal confirmation.
GEX Analysis for Options Trading
* Gamma Exposure (GEX):
* The highest positive GEX is concentrated at $600, suggesting call sellers dominate above this level.
* The highest negative GEX at $589 aligns with the PUT wall, indicating strong bearish bias.
* Options Oscillator Insights:
* IVR: 17.2, with implied volatility slightly elevated.
* Put/Call Skew: 65.3% favoring puts, confirming bearish sentiment.
* Key GEX Levels:
* Resistance: $594 (HVL) and $600 (2nd CALL Wall).
* Support: $589 (PUT Wall) and $577.74 (deep support).
Trade Scenarios
1. Bearish Setup:
* Entry: Below $589.
* Target: $588, $577.
* Stop-Loss: Above $591.
2. Bullish Reversal (High Risk):
* Entry: Above $594.
* Target: $596, $600.
* Stop-Loss: Below $592.
Actionable Advice
* Bearish continuation is more likely given the gap down. Watch for volume confirmation near $588 to $589.
* For options, consider buying puts at $589 with tight risk management or selling call spreads near $594 resistance.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.