SPY cap 775 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 08:20 ET, SPY traded at 773.04, 0.3% below the cap. On the same map, the next level below was 765. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 2.51 away (772.49); the session range was 761.10 to 772.49. In the last hour price moved up 1.83, from 761.40 to 763.23.

The regular-session close was 763.23, 11.77 (1.52%) under the cap at 775. Under the rule (cap: close under is a hit), that is a hit.

SPY finished the day down 1.1%. We found no single clear company-specific catalyst for the day in our notes.