SPY, QQQ: Find Out Crucial Support And Resistance Levels Priced In By Options Market Ahead Of Fed Meet Outcome

U.S. markets closed in the red on Tuesday and are expected to witness significant volatility this week as the Federal Reserve is scheduled to announce its monetary policy on Wednesday. Apart from this, employment figures from the Labor Department, as well as Apple Inc AAPL earnings, will also be watched out keenly by investors and traders.

Also Read: Best Exchange Traded Funds (ETFs)

With so many factors having a bearing on the market's movement this week, here's a look at the crucial support and resistance levels factored in by professional traders for some of the popular exchange-traded funds:

1. SPDR S&P 500 ETF Trust SPY: The ETF closed Friday's session 1.12% lower at $410.84.Options expiring on Friday indicate maximum open interest accumulation amongst Call strikes lies at the $415 mark, indicating the level is expected to act as a stiff resistance for the week. On the downside, the $400 level is expected to provide decent support in case the $405 level fails to hold the fort during the week.

2. Invesco QQQ Trust Series 1 QQQ: The ETF ended Friday 0.87% lower at $319.38. Options expiring on Friday show maximum open interest accumulation at the $325 mark, indicating the level could provide a decent resistance this week. On the downside, traders are likely to be considering the $315 mark as the first line of support in the near term.

Open interest figures only provide a fair idea about support and resistance levels. It is noteworthy that heavy volatility can be expected this week and significant asset price movements can lead to a subsequent change in open interest levels as well.

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