A few thoughts in preparation to leaving.
SPX futures have reached an overnight high of 4417.90 on their way toward the 50-day Moving Average at 4448.34. It has cleared short gamma at 4400.00 and may probe higher in a short squeeze. Be prepared for a reversal in the next 24 hours.
Today’s op-ex shows Maximum investor pain at 4415.00. Long gamma may start at 4425.00 while short gamma begins at 4440.00 and is well populated in 50 point intervals, suggesting institutional shorting.
VIX futures have slid to a morning low of 16.73 thus far. We may see the VIX correct down toward the 50-day Moving Average at 14.56 in the next 24 hours. Today may offer a buy-the-dip opportunity.
Wednesday’s op-ex shows Maximum investor pain at 18.00. Short gamma resides at 14.50-16.00, while long gamma begins at 20.00.
TNX futures have pulled back to 43.07 thus far this morning. While there may be an occasional pullback. TNX remains on a trending mode higher through mid-September.
ZeroHedge observes, “Unlike last year’s fire and brimstone last-minute-revised speech, when the Fed found itself flailing to catch up with runaway inflation, most economists don’t expect Powell to send strong signals about the near-term policy path during his Jackson Hole speech Friday morning.”