META cap 740 hit

Cap: close under is a hit. Close on the level is a push. Graded on the regular-session close.

A cap is a price above the market where a large amount of options positioning sits. The idea is that this positioning can slow a move up there, so the test is simple: does the stock close under it? When it was posted at 10:34 ET, META traded at 722.4, 2.4% below the cap. On the same map, the next level above was 750 and the next level below was 700. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 7.02 away (732.98); the session range was 718.67 to 732.98. In the last hour price moved down 6.88, from 725.55 to 718.67.

The regular-session close was 721.15, 18.85 (2.55%) under the cap at 740. Under the rule (cap: close under is a hit), that is a hit.

META finished the day down 2.4%, while SPY was down 0.2%. We found no single clear company-specific catalyst for the day in our notes.