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Monday, January 29, 2018

Daily update 1/29 SPY option data

Actual selling pressure.

The market must of thought it over did it a bit on Friday.  Breadth was -79%.  That is the most negative reading since last Aug.  The market was several days off its high that time.  It is unusual to have such a high reading right off a fresh new high and a strong day like Friday.  Down days have been in short supply this year.  Every one of them was a buying op.  It could be today will be no different. 

The futures came back inside the channel again.  They have not stayed there long this year. 

The green count took a big hit, but remains above 50.  The overbought condition has been alleviated.

Here is another look at the SPY option data.

In the last week they added over 100,000 calls to the 286 strike.  I have not been doing this very long, but that seems like a really huge move in a short time.  That means that 286 could be formidable resistance or a really big acceleration point for delta hedging should SPY get above Friday's high.  Above 286 it looks like 291 is the next strike with a significant number of calls.  Will the bulls keep pushing or take a pause?

Wednesday will be Janet's last FED meeting.  For many years now the day before a FED meeting has usually seen a gap up and a positive day.  Maybe the bulls will pull off that trick again.  We will just have to wait and see if SPY 286 is a problem for continued upside or not.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.