It was Quad witching day and we had some drama early on. The same day expiration option chain had some "technical" issues and folks were not able to close out positions. During this time the SPY plummeted to a new low to sub 363.
The market recovered a bit from that low and had a pretty boring close at 366.
Crypto kissed the pavement on Saturday as BTC hit under 19k and ETH went under 900. They have since recovered back over 20k and 1100 respectively.
What to Expect?
No major fed data events until PMI on Thursday, but holy moly I hope you like Fed Speakers...
Tues - Mester at noon, Barkin at 3:30
Wed - JPow testifies to the Senate banking committee at 9:30. Bullard talks at 12:50
Thurs - JPow testifies the House Financial Committee at 10am.
Fri - Bullard speaks at 7:30am. Daly talks at 4pm.
What Do I Think?
Technicals - We are no longer oversold on 30 min, 1 hour charts. We are still oversold on the 4 hour chart. I am still leaning bullish here believe it or not.
We have a gap to fill up to 380 on SPY. It looks like we may test that level soon as the futures have been very strong on Monday.
The key level here is still 363 on the downside. If that is broken soundly, we are headed to 350 very soon.
THE PLAY OF THE DAY
The level I am watching is 373 for calls. If that is broken, I think it is safe to ride this rally up to 380 and then take it from there.
If we test 363 and hold it, I will go heavy in calls as that is major support, and will watch how it handles 370 after its test.
If we break under 363, The next line I have is 350... so yeah it will be puts for me.
As always all of this is my opinion and not financial advice.