Analysis for Short Term Option Trading!
The SPY has rebounded to the 50 level after two days of battling. Okay, now we want to know if it can climb above that level and stay bullish again. It may be very hard to do. This dip was the largest it had this year. It will take a lot to climb back up to the 142 level again and stay there.
The SPY pushed through and spread the band, but not that much. This push up will start bringing the bands together. If it moved sideway, we might see an extended move down. Watching the move of the stock now will tell us the longer term direction it will go.
The SPY looks like it needs more time to turn up. Iif we look at the MA’s, we can see that there is stil la need to turn bullish it does not look like it has reached bottom yet. The MCAD Histogram on the other hand looks like it has reached bottom, just is not moving up.
Stock index futures were under pressure on Friday, weighed by bearish concern over Spain's rising borrowing costs and Chinese economic data.
Speculation that China's weakest quarter of annual economic growth since the global financial crisis will trigger a flood of policy support to fight the downturn misses a crucial point - the taps are already turned on.
The annual rate of GDP growth in the first quarter slowed to 8.1 percent from 8.9 percent in the previous three months, the National Bureau of Statistics said on Friday, below the 8.3 percent consensus forecast of economists polled by Reuters.
China's stock market rallied despite the disappointing data, on the hope that the poor first-quarter showing would be enough to spur more assistance from Beijing, perhaps easier lending terms or more government spending.
Oil prices fell to near $103 a barrel Friday after data showed economic growth slowed more than expected in China, the world's second-largest crude consumer.
By early afternoon in Europe, benchmark oil for May delivery was down 37 cents to $103.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 94 cents to settle at $103.64 in New York on Thursday.