Spider Call Options Sep 16

Spider Call Options Sep 16

A positive divergence emerged on the day before the FOMC after a few days of selling. See how it developed.

SPY 28 min Sep 16

SPY 28 min chart for Sep 16

MACD made a low on Sep 10 and increased over the following days while the SPY share price continued to make a series of lows. This process created a positive divergence between the MACD and the share price, resulting in a buy(red up arrow) on Sep 16. The purpleĀ  horizontal lines show the divergence and at the same time give a target. The share price clearly exceeded the indicated target.

 

SPY 14 min Sep 16

SPY 14 min chart for Sep 16

MACD made a low on Sep 15 and continued to increase and the share price continued with a series of lows. This all occurred in tandem with the 28 min time frame. The purple lines show the divergence and at the same time provide a target for where the share price should go and this target was well exceeded in this case.

 

 

VXX 14 min Sep 16

VXX 14 min chart for Sep 16

The VXX confirmed the divergence with its own negative divergence over Sep 15-16. The VXX made a new high while the MACD continued down.

 

SPY Call Option Sep 16

SPY Call Option 5 min chart Sep 16

The call options rallied on this Tuesday from below 10c to above 20c.

Author: tedvanderende

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