RealTime IT News

Technical Analysis: Puts Pile Up

With puts piling up again ahead of a holiday weekend, the market could see a bounce Monday if the weekend passes without incident. That said, this pattern has become so ingrained that it's due for a change at some point. With options expiry coming up next week, max pain - the point where most options expire worthless - is at about 36.50 on the QQQ, the Nasdaq 100 tracking stock, or about 1% down from here. If the market starts the week up, it may spend the second half going down. It's also a quadruple expiry week, so expect volatility. The Nasdaq (first chart below) faces resistance at 2005, 2010-2012 and 2020-2023, and support is 1980-1985, 1973 and 1969. The S&P (second chart) has support at 1135, 1130, 1125 and 1120, and resistance is 1141-1142 and 1147-1150. The Dow (third chart) has support at 10,400, 10,340 and 10,300-10,330, and resistance is 10,430-10,440 and 10,500-10,570.