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Market technical analysis with Options Trading Ideas SPY, QQQ, PYPL - November 2, 2020

Updated: Nov 21, 2020

Good Morning folks.

SPY , On October 28, moved below the ichimoku cloud as shown in the chart. In the premarket today, it is trying to rebound from a low of 322. Lets look at SPY price action. It is very important to be aligned with overall market to generate consistent profits in trades

SPY started falling from high of 354.02 on 10/12/2020. As shown in the daily chart, from 10/6/2020 to 10/12/2020, SPY covered a gann angle of 90 degrees from a low of 334.88 as shown below

334.88 343.88 352.88

Now, it has fallen 135 degrees from a high of 354 and there is a good chance it can go to 180 degrees at 318 In the premarket, SPY is rising and it may go up to 336 and above before falling back to 318. SPY Lead Span A is at 335 and Lead Span B is at 338.92 on the daily chart.

354 345 336 327 318

SPY still looks bullish on the weekly chart as per Ichimoku and MA10 is still greater than MA 20. Price is slightly below MA 20. On the weekly chart, it has crossed the conversion and is headed towards the base line at 317.56. So it coincides with the gann angle on the daily chart. So, 318 seems to be a good support for SPY for now

QQQ also looks bearish on the daily chart and seems to be a mirror of SPY. On the weekly chart, seems to have support at 259.99 at the base line.

PYPL is reporting earnings today evening. From 10/19/20 to 10/21/20 it rose 90 degrees from 199.10 to 215.83 covering 90 degree gann angle

199.10 206.10 213.10

And has been falling since then 180 degrees to a low of 182.92. In the premarket, it has been rising.

215.83 208.83 201.83 194.83 187.83 180.83 173.83

Also the weekly ATR for PYPL is at 15.55. On the weekly chart, it has crossed the conversion and has not touched the base line at 177.72. There is a good chance that PYPL could head to 173 area crossing the baseline reaching 191.91 flat line resistance on the daily chart.

Have a profitable trading day !!!

Ichimoku and gann fans are extensively used in the technical analysis described above. TC2000 is used as the charting tool.


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