Market Analysis (07 April’21)

The S&P 500 eked out a record close Wednesday after notes from the Federal Reserve’s last policy meeting showed that the central bank remains committed to supporting markets and the economy.

S&P 500

The S&P 500 futures (ES) continued to consolidate today in a tight range between the 4055 and 4075 levels. The last two trading sessions have been very slow, however, not surprising after what has been nothing short of a melt up during the previous five sessions. The index appears to be accumulating energy for another leg higher this week or next week.

ES, 15m

A Vote Of Confidence

A large complex bullish bet was placed on SPY today by an institutional trader via the 14 May’21 puts. The trader sold 48000 of 14 May’21 $335 puts as well as entered into a Bull Put Spread via 24000 puts for $335 and $315 strike each. This was a new trade placed today since the volume is much larger than the open interest on all three strikes. It is a clear vote of confidence that the S&P 500 should continue moving higher into mid May.

SPY, Time and Sales and Options Chain

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