By: Tom Gentile
on January 21st, 2022
The Market Sell Off Lasted All Week
If one was looking for a support level for the stock market to hit and hold this week that did not happen at all. The exodus in tech stocks due to rates rising and the likelihood of them continuing to do so was cause for a mass exodus in equities; and a great deal of that was in tech.
I already pointed out the NASDAQ closed over 10% off their November highs in a previous Market Insight article so let me now focus the attention on the SPY, (the ETF that tracks returns of the S&P 500 Index).
Where Support in the Equities Market May be Found
I have two green horizontal lines on the chart for the SPY, both under pivot low points and where there may be some support to be found.
Should those price levels not hold we obviously have more room to drop, and bearish options positions would be the ideal approach.
Should either or those price levels hold, and the markets show a bounce or upside potential here is a list from my app. Toms Option Tools that show the 10 stocks with Unusually High Call Option Volume.
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.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.