SPY: Technical Analysis for Today's Trading - Jan. 28
Market Overview
* SPY is currently consolidating near the $601 level after recovering from the recent dip to $589.
* Immediate resistance levels include $607 (pre-market high) and $610.78 (major resistance from the GEX).
* Key support levels are $600 (psychological level) and $589 (yesterday’s low).
* The 30-minute chart shows an overall upward trend within a tightening range, suggesting potential for breakout or breakdown depending on the broader market sentiment.
Gamma Exposure (GEX) Metrics
* Call Walls:
* $610: Highest positive NETGEX, indicating strong resistance and possible profit-taking zone.
* $615 - $620: Additional upside targets if momentum strengthens.
* Put Walls:
* $590: Highest negative NETGEX, acting as critical support. Breach below could trigger strong selling pressure.
Options Metrics
* IVR: 24.4, suggesting moderately low implied volatility, offering limited premium opportunities for scalpers.
* Put/Call Ratio: 69.3% PUTs, indicating bearish sentiment among options traders.
Scalping Strategy
Bullish Scenario
* Entry Point: Above $602 after confirmation of volume and momentum.
* Targets:
* First Target: $607 (PMH/Pre-Market High).
* Second Target: $610.78 (Key GEX resistance level).
* Stop-Loss: $600 (ensure a tight stop to minimize losses if momentum fails).
* Indicators to Watch:
* Stochastic RSI: Look for oversold reversal near the 50 level on the 30-minute chart.
* MACD: Ensure bullish crossover confirmation before entering long positions.
Bearish Scenario
* Entry Point: Below $600 with strong downside momentum.
* Targets:
* First Target: $595 (midpoint support).
* Second Target: $589 (previous low and major support).
* Stop-Loss: $602, as reclaiming this level would invalidate the bearish setup.
* Indicators to Watch:
* Volume spikes accompanying the breakdown of $600.
* MACD crossover below the signal line for confirmation.
Scalping Tips
1. Risk Management: Maintain a risk-to-reward ratio of at least 1:2 for all trades.
2. Execution Speed: Trade with tight spreads and monitor key levels closely for rapid changes in momentum.
3. Market Sentiment: Keep an eye on broader indices like QQQ and DIA for correlation and potential sector rotation cues.
Outlook for Today
* SPY's range is likely to remain between $600 (key support) and $607 (resistance) during the morning session.
* A breakout above $607 could push SPY toward $610.78, whereas a failure to hold $600 might trigger a retest of $589.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade with caution and manage risk appropriately.
* SPY is currently consolidating near the $601 level after recovering from the recent dip to $589.
* Immediate resistance levels include $607 (pre-market high) and $610.78 (major resistance from the GEX).
* Key support levels are $600 (psychological level) and $589 (yesterday’s low).
* The 30-minute chart shows an overall upward trend within a tightening range, suggesting potential for breakout or breakdown depending on the broader market sentiment.
Gamma Exposure (GEX) Metrics
* Call Walls:
* $610: Highest positive NETGEX, indicating strong resistance and possible profit-taking zone.
* $615 - $620: Additional upside targets if momentum strengthens.
* Put Walls:
* $590: Highest negative NETGEX, acting as critical support. Breach below could trigger strong selling pressure.
Options Metrics
* IVR: 24.4, suggesting moderately low implied volatility, offering limited premium opportunities for scalpers.
* Put/Call Ratio: 69.3% PUTs, indicating bearish sentiment among options traders.
Scalping Strategy
Bullish Scenario
* Entry Point: Above $602 after confirmation of volume and momentum.
* Targets:
* First Target: $607 (PMH/Pre-Market High).
* Second Target: $610.78 (Key GEX resistance level).
* Stop-Loss: $600 (ensure a tight stop to minimize losses if momentum fails).
* Indicators to Watch:
* Stochastic RSI: Look for oversold reversal near the 50 level on the 30-minute chart.
* MACD: Ensure bullish crossover confirmation before entering long positions.
Bearish Scenario
* Entry Point: Below $600 with strong downside momentum.
* Targets:
* First Target: $595 (midpoint support).
* Second Target: $589 (previous low and major support).
* Stop-Loss: $602, as reclaiming this level would invalidate the bearish setup.
* Indicators to Watch:
* Volume spikes accompanying the breakdown of $600.
* MACD crossover below the signal line for confirmation.
Scalping Tips
1. Risk Management: Maintain a risk-to-reward ratio of at least 1:2 for all trades.
2. Execution Speed: Trade with tight spreads and monitor key levels closely for rapid changes in momentum.
3. Market Sentiment: Keep an eye on broader indices like QQQ and DIA for correlation and potential sector rotation cues.
Outlook for Today
* SPY's range is likely to remain between $600 (key support) and $607 (resistance) during the morning session.
* A breakout above $607 could push SPY toward $610.78, whereas a failure to hold $600 might trigger a retest of $589.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade with caution and manage risk appropriately.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.