By: Tom Gentile
on March 3rd, 2023
The Stock Market Averages are Seeing Some Bullish Follow Through Friday 2023-03-03
All week long the emphasis has been on the markets testing support and keeping an eye out for a bounce or a breakdown.
Yesterday was a bullish reversal day and part of a two-day pattern called a bullish engulfing pattern.
It was noted we need to see some bullish follow through to the upside and today we are getting it. Look at the chart below on the SPY.
The thing to ask now is do you feel the markets will continue higher or fail to the point it breaks support.
As things look now, there are two scenarios that could play out, (obviously there are many, but here are the two being pointed out).
- The markets continue to trade higher and the previous peak high at $416.71 is where the SPY goes or…
- The support price of 393.75 get breached and the markets start a move to previous, lower Fib levels.
Morning Reports Lists
Whichever way you anticipate the markets trading there is data for where the options activity I that you can use a starting place to consider options trade, both bullish and bearish.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
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