SPY Technical Analysis & GEX Insights
Market Overview
SPY is experiencing a pullback within an overall uptrend structure. The price is testing a key support zone near $600, while options gamma positioning indicates pivotal areas for potential reversals or continuation moves.
Technical Analysis
1. Trend Analysis:
* SPY recently broke below a short-term ascending wedge pattern, signaling a corrective phase.
* Price is now consolidating near $600, a significant support level.
2. Support and Resistance:
* Immediate Support: $600 (HVL zone and round number psychological level).
* Secondary Support: $595 (put wall support and prior consolidation zone).
* Resistance Levels:
* $606 (local resistance within the channel).
* $610 (key breakout level / gamma resistance).
3. Indicators:
* MACD: Bullish crossover forming, suggesting a potential reversal if momentum sustains.
* Stochastic RSI: Rebounding from oversold conditions, aligning with near-term bullish sentiment.
* Volume: Increasing on the pullback, indicating participation by buyers at lower levels.
4. Price Action Insights:
* A hold above $600 would favor a bounce toward $606-$610.
* A breakdown below $600 could lead to a sharper decline toward $595 or $590.
Gamma Exposure (GEX) Analysis
1. Critical GEX Levels:
* Call Walls:
* $610: Major resistance with 59.88% call gamma exposure.
* $620: Highest positive gamma wall, marking the bullish target for continuation.
* Put Walls:
* $600: Strong put support level, aligning with HVL.
* $595: Secondary put gamma support, reinforcing downside defense.
2. Options Oscillator Metrics:
* IVR (Implied Volatility Rank): 17.7, indicating relatively low volatility.
* IVx (Implied Volatility): 16.4% average.
* Call/Put Dollar Ratio: 83.9% skewed heavily toward puts, reflecting bearish sentiment.
3. Implications:
* Strong gamma concentration at $600 suggests significant market maker activity, potentially stabilizing the price.
* A close above $606 would align with unwinding of bearish positions, opening upside potential toward $610 and $620.
Trade Setups
1. Bullish Setup:
* Entry: Above $606.
* Target: $610, $620.
* Stop Loss: Below $604.
2. Bearish Setup:
* Entry: Below $600.
* Target: $595, $590.
* Stop Loss: Above $602.
Conclusion
SPY is trading at a pivotal support zone near $600. Options gamma positioning and technical indicators suggest potential for a bounce, but a break below $600 could accelerate bearish momentum. Monitor the $606 resistance for upside confirmation and $595 for downside risk.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
SPY is experiencing a pullback within an overall uptrend structure. The price is testing a key support zone near $600, while options gamma positioning indicates pivotal areas for potential reversals or continuation moves.
Technical Analysis
1. Trend Analysis:
* SPY recently broke below a short-term ascending wedge pattern, signaling a corrective phase.
* Price is now consolidating near $600, a significant support level.
2. Support and Resistance:
* Immediate Support: $600 (HVL zone and round number psychological level).
* Secondary Support: $595 (put wall support and prior consolidation zone).
* Resistance Levels:
* $606 (local resistance within the channel).
* $610 (key breakout level / gamma resistance).
3. Indicators:
* MACD: Bullish crossover forming, suggesting a potential reversal if momentum sustains.
* Stochastic RSI: Rebounding from oversold conditions, aligning with near-term bullish sentiment.
* Volume: Increasing on the pullback, indicating participation by buyers at lower levels.
4. Price Action Insights:
* A hold above $600 would favor a bounce toward $606-$610.
* A breakdown below $600 could lead to a sharper decline toward $595 or $590.
Gamma Exposure (GEX) Analysis
1. Critical GEX Levels:
* Call Walls:
* $610: Major resistance with 59.88% call gamma exposure.
* $620: Highest positive gamma wall, marking the bullish target for continuation.
* Put Walls:
* $600: Strong put support level, aligning with HVL.
* $595: Secondary put gamma support, reinforcing downside defense.
2. Options Oscillator Metrics:
* IVR (Implied Volatility Rank): 17.7, indicating relatively low volatility.
* IVx (Implied Volatility): 16.4% average.
* Call/Put Dollar Ratio: 83.9% skewed heavily toward puts, reflecting bearish sentiment.
3. Implications:
* Strong gamma concentration at $600 suggests significant market maker activity, potentially stabilizing the price.
* A close above $606 would align with unwinding of bearish positions, opening upside potential toward $610 and $620.
Trade Setups
1. Bullish Setup:
* Entry: Above $606.
* Target: $610, $620.
* Stop Loss: Below $604.
2. Bearish Setup:
* Entry: Below $600.
* Target: $595, $590.
* Stop Loss: Above $602.
Conclusion
SPY is trading at a pivotal support zone near $600. Options gamma positioning and technical indicators suggest potential for a bounce, but a break below $600 could accelerate bearish momentum. Monitor the $606 resistance for upside confirmation and $595 for downside risk.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
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.