Hanging in there
SPX and QQQ are walking a tightrope
Just wanted to send out a quick note on SPX and QQQ.
As you probably have seen, SPX was trading within 6800-7000 range (white box) since beginning of the year. However, it broke the range today with all the Middle East tensions. Interestingly, price managed to close back inside the range and above the 100D EMA.
Bulls’ job rest of the week is to hold the line: the 6800 - 6775 area is critical. If we keep failing that area then that opens up a path to a lower range (i.e. Nov’s low).
Levels of interest: 6660, 6700 (PS), 6710, 6730, 6755, 6775, 6800, 6825, 6850, 6885 (HVL), and 6900 (CR)
Similarly, QQQ’s range is 695-630. It needs to hold 595 - 592 area on dips or else we will see a real range break. Notably it has a fall wedge pattern on the daily right now.
Levels of interest: 590, 592, 595 (PS), 598, 600, 602, 605 (HVL), 606 (CR), and 608
TanukiTrade’s GEX supports this with 595 as the PS for rest of the week. Do note that we have AVGO 0.00%↑ earnings tomorrow AH, with an implied move of +/- 7.25%. That can be a short term catalyst for the market.
Despite the volatility we had a good trade in the discord today, where I took advantage of the overvixed condition and opened NQ 6/18 20000 / 14000 PCS at -238. I closed some at 195, netting $860 per spread.
Tricky, our futures analyst, called the low and took ES longs against 6723 as stop.
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Hi there. Sow your interview on YouTube and it was very interesting and educational. Thank you for that. A quick question, I sow from your Excel sheet that you use quite wide credit spread of -400 points, and time to expiration between 0DTE to 4 or 5DTE. What is the criteria for you to select what DTE to use and width of the spread?