SPY cap 778 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 08:39 ET, SPY traded at 774.4, 0.5% below the cap. On the same map, the next level below was 770. See the original post.

Price traded through the cap during the session (first 5-minute close on the wrong side at 4 PM ET), with a low of 771.08 and a high of 778.57. In the last hour price moved up 5.92, from 772.65 to 778.57.

The regular-session close was 773.89, 4.11 (0.53%) under the cap at 778. Under the rule (cap: close under is a hit), that is a hit.

SPY finished the day down 0.4%. We found no single clear company-specific catalyst for the day in our notes.