Morning Notes – 4/29/2022

Good Morning:

• Today is the last trading day of the month and weekly options expiration. I don’t typically trade these days as the price action can be tricky.
• Not much has changed in terms of volatility. I would expect roughly plus or minus 50 points from the open.
• Price should find support at 4210 (SPY 420 equivalent) to 4200 SPX. Resistance shows at 4285 (the Gamma flip line), then 4300. Expect resistance around 330 in the QQQ.
• Our proprietary algorithms rendered another gorgeous buy signal at 4220 on the futures with the exit signal coming at 4290 for a gain of 70 points ($3500) per contract.
• Nevertheless, it was a short-covering rally once again. The market has to follow-through to convince us that a reliable trough has formed.
• I am not expecting much direction until the Fed announcement next Wednesday. Otherwise, price is merely playing ping pong.