We can expect plenty of gap-open sessions ahead in either direction and impossible to forecast the night before. The power of rumor exists for Fed rate cut intervention before the May FOMC meeting. As shorts painfully learned on January 3rd, Greenspan can drop this bomb at almost any point in time and that will weigh heavily on those holding massive short profits as each session or week's end nears. We would trade the upside cautiously and downside a bit more aggressively while following the daily trend with care. Ratio listed is percentage of calls to puts or puts to calls respectively.
Support is factored from dividing puts by calls at strike levels beneath index closing price.
Resistance is factored from dividing calls by puts at strike levels above current closing price. A reading above 10.00 is considered viable resistance or support respectively within that general strike price range. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs are not. Extreme divergence between each signals a possible market turn in favor of the commercial trader's direction.