Happy Sunday Friends.

So as we go into the week I have noticed a few things on the option chain that I think y’all might find helpful.  

We are oversold on most sectors, since the entire market fell out of bed on Friday, even the bullish sectors of the market.  And it seemed most of the flow towards the second half of Friday was more short call/selling, and not as much buying activity.  So it could very well be that on Monday morning we have a bit of a pop up, because we have light gamma squeezes going into most of the earnings tech plays this week.  Essentially because of all the short cover, the brokers will need to reposition themselves to a delta nuetral position that could cause a bullish move.

However, if on Monday we begin the day with lower forward guidance on those reporting earlier, this could will drive real-money selling across markets again.

The put areas of support on SPY, SPX, QQQ, NDQ all dropped significantly, with SPX now boasting a significant support area at the 4000.  And an array of other support / resistance areas that lack sufficient volume to be a true level.

Morning Update – April 24, 2022

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