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 08:35 ET, SPY traded at 777.23, 0.4% below the cap. On the same map, the next level above was 785 and the next level below was 770. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 0.83 away (779.17); the session range was 775.59 to 779.17. In the last hour price moved down 0.37, from 778.94 to 778.57.

The regular-session close was 778.53, 1.47 (0.19%) under the cap at 780. Under the rule (cap: close under is a hit), that is a hit.

SPY finished the day up 0.6%. We found no single clear company-specific catalyst for the day in our notes.