Current gamma distribution for the SPX below. Dealers are selling many futures between 6,150 & 6,200. Thus 6,150 is a strong resistance initially, but once the market breaks into that zone, liquidity will increase substantially (positive) and dealers increasingly buy the dips to delta-hedge their option exposure.
Howevah… I still have my macro/intermarket divergences I highlighted in my yday daily ditty.
Add to that, even before the Fed minutes were released this afternoon discussing that the long-term balance sheet goals favored a curve steepening, my 10Y2Y yield curve started to steepen.
Translation: Market is still in a state of disbelief, climbing the proverbial wall of worry while tightly gripped in its Q4 earnings clench.
