S&P 500: As Index Hits 14-Month High, Find Out Crucial Trading Levels Priced In By Options Market

After the Federal Reserve‘s decision to pause the rate hike, economic data released on Thursday boosted market sentiment, propelling the S&P 500 to its 14-month highs. The number of Americans filing for unemployment benefits rose by 262,000 in the week ending June 10, remaining unchanged from the previous week’s revised higher figure of 262,000 and surpassing the projected 249,000.

Following the positive outlook, the SPDR S&P 500 ETF Trust (NYSE:SPY) closed 1.24% higher, while the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) saw a 1.19% increase, as reported by Benzinga Pro.

Also Read: Best S&P 500 ETFs

Here’s an analysis of the options market outlook for the S&P 500, considering crucial support and resistance levels:

1. Resistance: The index closed at 4,425.84 on Thursday, marking a 1.22% gain. Options expiring on June 30 indicate significant open interest accumulation at the 4,450 Call strike, suggesting this level could act as a resistance in the near term. From a one-day chart perspective, the next major resistance is expected near the 4,500 level.
2. Support: Options data reveal notable open interest accumulation at the 4,400 Put strike, implying that this level may serve as support in the near term. In the event of a sell-off or profit-booking, the one-day chart of the S&P 500 suggests that levels around 4,320 could act as the next support level.

It’s important to note that open interest figures provide an estimate of support and resistance levels. Significant movements in the indices could occur due to major news or macro events, leading to subsequent shifts in open interest levels.

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