In my previously posted idea I outlined potential targets for the week: monthly and quarterly R1s. Both targets were tagged and the market entered a consolidation phase. The monthly and quarterly resistance are controlled by larger timeframe participants. So far a muted reaction, the price is consolidating, while those participants are waiting for the big tech earnings. I anticipate a resolution of the range in the upcoming week. The reaction may have a potential to hit the all time high to follow the mother of all products S&P. But it could be a completely opposite outcome. The price is at a strong resistance already and the sellers are patiently waiting to hit the button.
The options market positioning is another tool for a trader that goes beyond the chart. This is how the market maker defines the risk.
For the upcoming week the expected range: 15036 - 15605. A spike in volatility may lead the price to retest both edges. Violation of the range is bad for the market maker.
Earnings noise could be very deceiving. To stay objective it is prudent to watch the pivot levels: weekly, monthly, quarterly.
10/23/2021
The options market positioning is another tool for a trader that goes beyond the chart. This is how the market maker defines the risk.
For the upcoming week the expected range: 15036 - 15605. A spike in volatility may lead the price to retest both edges. Violation of the range is bad for the market maker.
Earnings noise could be very deceiving. To stay objective it is prudent to watch the pivot levels: weekly, monthly, quarterly.
10/23/2021
