SPY cap 770 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 766.71, 0.4% below the cap. On the same map, the next level below was 765. See the original post.

Price traded through the cap during the session (first 5-minute close on the wrong side at 11:35 AM ET), with 5-minute closes ranging from 766.27 to 770.06. In the last hour price moved down 1.49, from 767.97 to 766.48.

The regular-session close was 766.48, 3.52 (0.46%) under the cap at 770. Under the rule (cap: close under is a hit), that is a hit.

We found no single clear company-specific catalyst for the day in our notes.