Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Thursday, June 13, 2013

SPY Channel Saved

Stock Market Technical Analysis Blog

Click on image to enlarge

During the first hour today they did indeed step in to rescue the teetering SPY channel.  Not too far into the first hour they broke the SPY out of yesterday's downhill channel and started a new intraday uphill channel.  This caused the VIX (in the bottom chart) to pull back down below the blue 432 EMA line and as soon as it did the rally was on.  Anyone who was ready and watching for that VIX to cross back down below the 432 could have bought the SPY June 163 weekly Calls in the .35 range and held tight thru the day with the help of the narrow channel they were trading it in and then sold before the bell in the 1.40 range for a monster 300 percent gain.  

Trade well my friends