SPY cap 780 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 08:41 ET, SPY traded at 776.09, 0.5% below the cap. On the same map, the next level below was 775. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 1.43 away (778.57); the session range was 773.83 to 778.57. In the last hour price moved up 1.24, from 777.33 to 778.57.

The regular-session close was 777.17, 2.83 (0.36%) under the cap at 780. Under the rule (cap: close under is a hit), that is a hit.

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