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VPOC<\/strong>: 6787.75
VAL<\/strong>: 6775.75-6827.25
High-Low<\/strong>: 6762.50-6852
PP<\/strong>: 6800
Open<\/strong>: 6787.25 (Zone 1)
VIX<\/strong>: 24.02<\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
SP500 Trend<\/strong>: Neutral \ud83d\udfe0 to Bullish \ud83d\udfe2 overall sentiment<\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
Yesterday, the S&P 500 opened between the support zone of 6771-6777 and the resistance zone of 6815-6830 with several breakout attempts at both extremes, but the price remained trapped between these two zones until the US open. The previous day’s VPOC was located in the middle of this zone, showing agreement from both sides on the index price. <\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
At the US open, sellers attempted to take control with a new attempt to break the 6771-6777 support, but it held with a strong reaction from buyers who in turn attempted to break the 6815-6830 resistance, with a breakout that took the price to the previous day’s high at 6854. However, at this level, the price violently reintegrated the previous day’s value area following news of the presence of mines in the Strait of Hormuz. The price returned around the previous day’s VPOC to close around 6800. <\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
This morning, the S&P 500 opens in zone 1 at 6787.25 on the previous day’s VPOC. Buyers have taken control, pushing the price above the 6800 pivot and onto the 6815-6830 resistance zone. The cumulative delta has stabilized and is now in neutral territory. The price could reproduce yesterday’s scenarios, at least during the morning, while awaiting CPI figures at 1:30 PM. <\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
In terms of options, we still observe a strong level of Puts at 6600, indicating downside hedging. We also have (lighter) call levels around the 7000 level. <\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
The VIX remains around 24, volatility is still present, and the situation in the Middle East can still move quickly, so exercise caution when taking positions.<\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
Today, we will have CPI data at 1:30 PM, as well as crude oil inventories at 3:30 PM.<\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
Scenario 1 \ud83d\udfe1: On rejection at yesterday’s high of 6852<\/strong> and at the resistance zone of 6857-6866<\/strong>, the level could consolidate between this resistance and the support zone of 6771-6777<\/strong>.<\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
Scenario 2 \ud83d\udfe2: On breakout of yesterday’s high at 6852<\/strong> then the resistance zone of 6857-6866<\/strong>, the price could target the resistance zone of 6883-6900<\/strong> then on breakout of 6900<\/strong> target the zone of 6930-6930<\/strong>.<\/span><\/p>\n <\/span><\/p>\n<\/div>\n\n
Scenario 3 \ud83d\udd34: On breakout of the support zone of 6771-6777<\/strong>, the price could move lower and target yesterday’s low at 6762<\/strong>, then the support zone of 6715-6720<\/strong> then 6600<\/strong>.<\/span><\/p>\n <\/span><\/p>\n<\/div>\n