Outlook
SPY would end up flat to slightly lower tomorrow's expiration. While $SPX charts suggest mid-term buy signal, there were massive Put buying today, that might lead market lower early next week. We are going to "BTFD" of course.
SPY Today
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| SPY 5m |
SPY gapped up two days in a row and it was consolidation day today. It looks the market is digesting overbought condition by time, however, the volume is abysmal as some traders went to vacation on this long weekend.
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| $NYAD |
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| $NYHL |
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| SPY:RSP |
Cumulative $NYAD is all time high suggesting $SPX would follow.
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| $SPX CVI |
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| $SPX STVO |
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| $SPX VTO |
It looks like VTO hit the bottom and both of VTO's momentum indicators, ITBM and ITVM, triggered buy signal. We expect longer term investors would jump in the market with their sideway money. On the other hand, STVO exceeded +1σ, suggesting there would be short-term overbought condition.
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| SPY OI 05/27 |
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| SPY OI 06/03 |
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| SPY DWV 05/27 |
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| SPY DWV 06/03 |
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| SPY Option Big Trades 05/27 |
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| SPY Option Big Trades 06/03 |
OI chart shows there is a big resistance level at 210 on next week. We also noticed there were a couple of big trades in this quiet market.
10:32:36 0527 209.00C 10000x$0.87 $877,000.
10:45:12 0603 209.00P 22161x$1.11 $2,459,871
The first one is a big call buying at breakout level, and we know it rarely works to buy calls at breakout. SPY may close tomorrow at or less 209.
The second one is a massive put buying and we need keep an eye on it. Monday is holiday next week that means we have only 6 trading days for next expiration. This trader may be expecting quick pullback tomorrow or next Tuesday.
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