Good Morning Friends.
Inflation numbers are still accelerating to the upside. Everything is down in the premarket but we should still see a gamma bounce later today. Remember as I pointed out yesterday we have very few contracts on the SPX sitting between us and 4050 and then down at 4000.
But, SPY has a totally different dynamic where there is a support level at 420 and it seems the Put to Call Ratio is tapped out, so as we can see the VIX is above 30. If some of those deep in the money puts don’t get closed we’ll just bounce aggressively between the 420 and 430.
QQQ on the other hand just looks like it’s all down, so it my get a sympathy pop with the SPX because of the number of gamma squeezes on tech stocks going into Earnings, but be careful, we will see aggressive swings if those gamma squeezes produce a fast rally.