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? On the same map, the next level below was 774. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 1.41 away (778.59); the session range was 776.13 to 778.59. In the last hour price moved up 0.22, from 777.79 to 778.01.

The regular-session close was 778.01, 1.99 (0.26%) under the cap at 780. Under the rule (cap: close under is a hit), that is a hit.

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