Market Overview
The SPY is now three consecutive closes below the 21 EMA and today is shaping up to be a fourth. Price is sitting at 755.33, well under the 21 EMA at 765.27 and the 8 EMA at 761.11, and the 8 is rolling down toward the 21 with a spread of only 4 points, converging in a bearish direction. The 50 day at 766.42 is now also overhead resistance, so you have a wall of MAs stacked against buyers. VIX at 20.9 is elevated but not panicked, which means this could grind lower without a vol spike to shake anyone out. This is a downtrend.
The big SPX risk reversal flow this morning is genuinely two-sided, with bearish setups totaling roughly $800M in notional against bullish setups closer to $1B, so the bulls have a slight edge in gross flow but the two largest single prints are both bearish. QQQ flow is cleanly bullish, call buying and bullish risk reversals across multiple expirations pointing to tech relative strength. IWM saw a notable bearish risk reversal, reinforcing the idea that small caps remain under pressure here.
Option flow so far today - this is pure directional, three qualifying opening conditions and subject to $ premium market cap thresholds. No bias and no noise
Interesting trades of the day:
INTC
Dip buyers coming in
RKLB
Ahead of earnings on Monday 11/09 AMC
Here are my momentum scans for today for large cap names. I have multiple scanners available on the Discord and I cover the universe of names.
