Today I want to do a run down of the current market outlook using Dark Pools, Dealer Positioning and market wide Options Flow to inform our #optionstrading and #futurestrading today. Data can change but it will help formulate a plan.
Lets start with $SPX Gamma and Vanna courtesy of @WizOfOps #volland. We see a small, diminishing magnet at 4000. Accellerants to the downside if broken, but will initially be supportive (see attached).
Now lets do the same for $SPY but add in some additional data points from @Tradytics data driven insights. Structure indicates pinning, however if we break below 392, accelerants could be significant.
$SPY Dark Pools help paint the the picture further. Lots of resistance above, with some less intense support below.
Now, let's take a look at market net flow and delta positioning across the market. Puts continue to accumulate, most likely for downside protection in preparation for big events.
Lastly, we need to make sure we keep all the upcoming macro number releases in mind as they are the big fundamental drivers of the market. We had jobless claims this morning, with PMI tomorrow.
The big ones are Monday and Tuesday so I wouldn't be surprised to see us in consolidation until Tuesday, at which point the data will trigger a massive move (consider straddles for that!)
The data showed we'd be in consolidation today in a tight range. Once opening move completed, here's how it played out. Despite the tight range presenting itself, The top bearish OB and bottom bullish OB were hit once each. VWAP also played a part twice.
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