top of page
Bitcoin

🔥SPXW Calls Skyrocket SPY 300%! Why the Market's On Fire & Tomorrow's Game Plan🔥

Today has been a fabulous day in the market. The SPY surged dramatically, leading to SPXW calls skyrocketing by over 300%. Let's dive into why this move happened so quickly and how to position yourself for tomorrow.


SPXW Calls Skyrocket SPY 300%

Why Did This Move Happen So Fast?


Analyzing the SPY Chart


On that afternoon, SPY experienced a substantial rise, closing at 527.80 and reaching a high of 529.31. When we observe such moves, two things happened that day:


  1. Crossing the EMA Cloud: The SPY broke through the Exponential Moving Average (EMA) Cloud, signalling a bullish trend.

  2. Three-Wave Correction: The rapid correction followed by a swift rise indicates a strong upward momentum.

Explanation:


Retracement and Golden Ratio:


The retracement level exceeded 37.5% and reached the golden ratio of 1.625, a bullish sign. This usually leads to the next resistance level.


Determining Resistance:


By drawing a line from the high of the Fibonacci to the previous high, we identify the next resistance level at 524.61. Today's move took the SPY to 534.61, confirming this pattern.


Understanding the Fast Rise


This rapid ascent followed a five-day decline, suggesting a correction was due. The speed of the recovery, reaching significant levels in just three days, implies a possible pullback. Fast moves like this often lead to a correction to the EMA clouds and conversion levels.


Tomorrow's Game Plan


Anticipating the Pullback


Given today's rapid rise, it's crucial to be cautious about long positions tomorrow. We can expect the SPY to pull back to:


  • EMA Clouds and Conversion Levels: These are critical areas to watch for potential support and resistance.


Key Levels to Watch


If the SPY breaks through the previous low at 585.0, there's potential for further movement. However, let's focus on the immediate implications:


  • Resistance and Support: If SPY maintains above the EMA Cloud, it indicates continued bullish sentiment. However, watch for potential pullbacks to key support levels.


Upcoming FOMC Meeting


Next week’s FOMC meeting will be crucial. Market participants are eagerly awaiting the announcement of rate cuts. Depending on the outcome, we might see significant market movements. Be prepared for potential volatility following the announcement.


Conclusion:


In conclusion, today’s market action was a textbook example of rapid momentum driven by bullish technical signals and macroeconomic factors. Tomorrow, exercise caution, adjust your positions accordingly, and stay alert to market developments.

Happy Trading!



Comments


bottom of page