ATM Trading Club Newsletter

Thursday, May 30, 2024

### Market Recap:

So the bears are knocking at the door. The SPX opened today at 5259.77 and made a low of 5222.10. Currently, we have a somewhat sloppy hammer as the closing candle, which usually signals a reversal. So I am calling this a sloppy hangman because the rule is that the wick should be at least twice as long as the body. Currently, we have a short wick, so it's a borderline hangman formation.

Overall, we are in a trendline on the daily chart, and the bulls will have to defend this support if they want continuation to the upside. A break of this support can lead to the bears gaining momentum and eventually sending SPX to the 5100 zone.

Resistance Levels:

- EMA(9): 5272.92

- MA(5): 5276.21

ES needs to hold 5250 overnight. 

Friday: We have PCE and personal income data at 8:30 am, which will influence the market open. If ES stays above 5272 tomorrow and holds, then SPX should be able to test the 5260 resistance that was rejected today.

0DTE to consider: 

- If 5245 is tested and rejected, then aggressive Call vertical would be 5255/5260 and conservative would be 5270/5275.

- If SPX is able to hold above 5222.10, then a Put vertical at this level would be aggressive with strikes of 5220/5215 and conservative Put vertical of 5210/5205.