JNJ cap 250 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 14:10 ET, JNJ traded at 247.31, 1.1% below the cap. On the same map, the next level below was 240. See the original post.

Price traded through the cap during the session (first 5-minute close on the wrong side at 9:30 AM ET), with a low of 245.30 and a high of 254.00. In the last hour price moved up 0.81, from 247.80 to 248.61.

The regular-session close was 248.61, 1.39 (0.56%) under the cap at 250. Under the rule (cap: close under is a hit), that is a hit.

JNJ finished the day down 5.7%, while SPY was down 0.0%. We found no single clear company-specific catalyst for the day in our notes.