Outlook
SPY broke declining 50SMA and closed at right shoulder of H&S pattern. VTO of $SPX suggests more downside... Those charts suggest short but big option traders are going to the other way. We believe SPY bottomed here and we'll see another reversal tomorrow, then SPY goes higher next week.
SPY today
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| SPY 5m |
SPY had one more leg down, but it looks like the bus was too congested. If you haven't done so, we strongly recommend to read
Full Wagon Theory by
@verniman.
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| $NYAD |
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| $NYHL |
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| SPY:RSP |
Now $NYHL turned negative, that means 52w low exceeded 52w high. It looks bearish.
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| $SPX CVI |
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| $SPX STVO |
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| $SPX VTO |
CVI and STVO suggests near term/short term oversold and reversal is imminent.
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| SPY DWV 05/20 |
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| SPY DWV 05/27 |
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| SPY Big Trade 05/20 |
There was another BIG risk reversal trade at 10:09:14. A trader sold 21000 of 05/20 205.00P and bought 21000 of 05/20 205.00C. It was just after first sell off and 205.00P was deeply in the money. I would say this trade was very bold and risky.
There was also BIG put seller at 10:53:41 who sold 14000 of 05/27 203.50P.
I guess those big traders know this level was the bottom.
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