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 09:05 ET, SPY traded at 775.54, 0.6% below the cap. On the same map, 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 3.85 away (776.15); the session range was 767.32 to 776.15. In the last hour price moved up 2.28, from 767.32 to 769.60.

The regular-session close was 769.60, 10.40 (1.33%) under the cap at 780. Under the rule (cap: close under is a hit), that is a hit.

SPY finished the day down 1.1%. On the economic calendar that day: CPI (8:30 AM), Fed Beige Book (2:00 PM).