Greetings everyone! A quick post with $SPY, $QQQ and $IWM Open Interest and a few charts of interest for Tuesday 4/26/2016.
$SPY Open Interest:
Highest calls still at 215 and as mentioned during the weekend post, quite a few were rolled out of April 22nd expiry (210 calls) and some were sold to open. The immediate strike of relevance is 210 and resistance. Lots of calls here and hence a move here can certainly stall if need be. However, over 210, $SPY has room to 211, 212 and 214 also if need be. Support comes in at 207, 206 and 205. Lots of room higher but tons of overhead resistance.
Note: Keep an eye on intraday charts such as 60, 30 minutes for clues on patterns that may be developing on $SPY $SPX. As of now on 30 and 60 minutes charts, there may be a potential Head & Shoulders formation but need to be patient and not front run any of these as they can be negated quickly.
$QQQ Open Interest:
Heavy call resistance at 110. If it gets over 110, then 111 level also might act as resistance but not as much as 110. Has room to 112 if need be and a favorable report today from $AAPL might just pop it over the line to fill the unfilled gap in $QQQ. Support at 108. 107.5 then 105.5.
$IWM Open Interest:
$IWM is acting okay but a tad weak yesterday. If continues to stay over 112.50, it will be very constructive. On this OI chart 113 and 112.50 are support zones while it has room to run much higher towards 116 if there are favorable reactions to the economic and earnings reports. Bigger support at 110 and 108.
Broke out of flag formed off of the huge gap below, tested support and it is getting ready to bounce off of the support zone at around 164.65. If no position in the name, that can be an entry. RSI has worked off overbought conditions and is firmly in the bullish territory. Might be a short term swing trade.
Amazon has earnings later this week and this name showed solid relative strength on Monday, when the market was very wishy washy. RSI has started to turn back up in the bullish zone but will be watching MACD for any cross below. However, there is a flag type formation as well. If you want to have a pre-market run in this name, get involved today for a short term pop. Open Interest points to 637-637.50 as potential resistance then 650 and 660. Keep an eye.
This is another name I had pointed out earlier. Over 121.71 this has room higher to R1 or R2 on the chart. RSI is rising as well. There were lots of Jan 2017 $150 calls being bought and the current open interest there is 3369 as of writing this note. There was a buyer of 1000 of these calls paying $8.65 yesterday as noted by the options screener and @OptionsHawk (Joe Kunkle). Last earnings gap still unfilled to keep us even more interested.
$FANG has no relevance to the 4 tech names but this is an energy company for those who don’t know. It is flagging again and the trend has been higher for quite a remarkable run. RSI is rising and if it bodes well, this name should breakout over yesterday’s highs. Keep an eye.
Have a blessed trading day ahead!!!