SPY, QQQ: What Options Market Says About Some Crucial Trading Ranges Next Week

U.S. markets witnessed an upward momentum this week as fears surrounding the banking crisis ebbed to some extent following the takeover news of Silicon Valley Bank. However, the Biden administration proposed stricter rules for mid-size banks that pulled banking stocks down. Investors also weighed in on Fed officials’ remarks and release of the U.S. fourth-quarter GDP growth that stood slightly lower at 2.6% against prior estimates of 2.7%.

Market participants are now waiting for the release of the Personal Consumption Expenditures price index, which is the Federal Reserve's preferred measure of underlying price pressures.

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As April commences, here's a look at some crucial trading levels for the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust Series 1, as factored in by the options market:

1. SPDR S&P 500 ETF Trust SPY: The ETF ended Thursday's session 0.59% higher at 403.7. Options expiring on April 6 show significant open interest accumulation in the 406-410 zone, with the maximum accumulation being seen at the 410 Call strike. This indicates the zone may act as a resistance during the coming week. On the downside, the 400 level acts as a stiff support.

2. Invesco QQQ Trust Series 1 QQQ: The ETF closed 0.95% higher on Thursday at 315.68. Options data show that the 320 Call strike is witnessing a significant open interest accumulation, indicating the level could act as a resistance next week. On the downside, strong support is being factored in at the 310 level.

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