19% gain from taking puts and calls. The stalemate caused by the debt ceiling could be resolved within days as declared by President Joe Biden before he left for G7 meeting. The market spiked after the positive news.
⚠️ Looking at calls above 415.9 and puts under 414 on Thursday. Take note of strongest resistance above at 420.76, 426.56 and support below at 414, 408.
Following the decade old script
The SPDR S&P 500 (NYSE:SPY) was surging over 1% higher on Wednesday after President Biden said lawmakers will reach an agreement before the U.S. defaults on its debt, which could occur as soon as June 1.
The news caused the SPY to break up from a downward channel pattern as it reached a stubborn consolidation over the last few trading sessions.
The break up from the pattern caused the SPY to confirm a new uptrend is intact, with the most recent higher low formed on Tuesday at $410.24 and the most recent confirmed higher high printed at the $414.54 mark on May 10. On Wedndesday, the SPY was working to print a bullish Marubozu candlestick, which could indicate higher prices will come again on Thursday.
Bullish momentum of SPY holds above key level
The second most likely scenario is that the market ETF forms an inside bar to consolidate Wednesday’s bullish price action. If that happens, it will lean bullish for continuation in the direction of the current trend.
Bearish traders may want to wait for the SPY to eventually form a bearish reversal candlestick, such as a doji or shooting star candlestick, which could indicate the local top has occurred and a retracement is on the horizon. If the SPY rises to the $418.31 mark, it could find resistance there like it did on Feb. 2 and May 1.
Cautious optimism is likely to return to the market on Wednesday after the sell-off seen on Tuesday amid fears concerning a slowdown in consumer spending. Traders may look for cues from earnings reports from more retailers, the housing starts data and headlines on the debt ceiling stalemate.
@CaptainTiger @MillionaireTiger @TigerStars @Daily_Discussion
Comments
The $标普500ETF(SPY)$ has been on a downward trend in recent months.
It is difficult to say with certainty whether the S&P 500 will reach 420 in the near future.
I think debt ceiling will not be the risk to make the market down.