Wow, look at the ichimoku charts! They are spoken, and spoken volumes at that. The SPY has literally shot up to the sky and this is evident in the huge candlestick as shown in the chart above. The SPY closed at $143.79 up 1.18% or $1.67.
The market tested the resistance level provided by the Kumo (Cloud) and since this is the third time, it finally broke through the cloud! The SPY closed just above the cloud, and this is otherwise known as a Kumo Breakout scenario. The SPY has managed to retain its buying fever, and I am expecting more tonight.
If you take a look at the Chikou Span (or the lagging 26 day indicator), it shows a crossover both the historical Tenkan Sen and Kijun Sen moving averages. This is a bullish indicator to suggest that there is a great bullish movement.
Will the SPY continue its upswing and test the upper limits of $147 by Friday? It's anyone's guess. If it does, then perhaps it would be a good time to consider buying a Put Spread and let it naturally build the buffer. I personally think that the SPY is going to touch or maybe even expire at $147. So selling a Call Spread while it may have some advantages, may not be such a wise move considering that this is possibly the last trading week with any meaningful premium available.
Anyway, better to eagle the SPY tonight. It is definitely very very exciting! :)
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