Welcome to quadruple witching day. Traders will be managing options expirations on four different sets of instruments, potentially creating volatility and high volumes.
The back and forth that is typically created has little influence on direction of the market, but can make for some interesting intraday moves.
Equities are bid up across the globe as EU leaders discuss stimulus and China plans to speed up agricultural purchases. The China commitment diffuses recent trade tensions and is a good faith move to in relation to the Phase 1 trade deal.
S&P Futures Trading Levels
The S&P futures currently sit at 3125, about 30 handles off the week’s highs. The overnight move was a grind higher, that accelerated before the Euro open.
Support levels for the day will be 3110 and 3094.
Upside resistance is 3134 and 3150.
The current environment is trending sideways, with bullish responses to “bad” news creating a positive environment for stocks.
Three Stocks to Watch
SPOT- Spotify had an almost 13% move higher yesterday as the company continues to add podcast content. Look for continued strength as the stock hit all-time highs and is technically breaking out.
WORK- Goldman Sachs cut Slack to Sell from Neutral, which has the stock down over 3% premarket. WORK has struggled since its Q1 EPS report, which disappointed investors.
XLE – Energy stocks could find a bid today as crude oil surpasses the $40 mark for the second time this month. Follow through higher above recent highs could cause energy ETF XLE to head back to recent highs, about 20% above current levels.
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