Market Overview & Key Levels
The overnight low of 6013.50 attracted strong buying interest, pushing prices back to the day’s pivotal Line in the Sand (LIS) at 6025. Trading conditions have remained largely neutral and range-bound, with both upside and downside constrained by significant positive gamma levels at 6000 and 6027 (SPX), per insights from “Gamma Guys.” @spotgamma
- Bullish Scenario: Sustained bids above 6025 would target the 6035–6040 range.
- Bearish Scenario: Holding below 6025 would open the door to 6015–6010.
Similarly, the Nasdaq (NQ) pivoted around 21200, with initial targets of 21275–21300 for bullish momentum and 21145–21100 for bearish shifts.
Early Session Analysis
Early probes on the long side saw initial upside targets at 6035 tested and achieved. However, buying momentum stalled at 6034, trapping longs and allowing sellers to drive prices back to the 6025 LIS. Aggressive sellers emerged as the market tested this level, shifting the lean to the short side in line with tactical strategy adjustments.
Mid-Session Dynamics
The day unfolded in a tight range as consolidation rhythms dominated. Open-range trades yielded limited returns due to the trappy, range-bound environment. PTG David noted the importance of staying agile, particularly given upcoming FED commentary and other market-moving events.
A retest of the overnight low (ONL) at 6013 brought fresh bearish momentum, fulfilling the lower target at 6010. With market sentiment cautious, additional support was seen around 6006–6004, where participants were advised to tighten stops if holding short positions.
Afternoon Developments & End-of-Day Movement
Returning from a lunch break, David observed a notable bounce as BTFD (Buy The Dip) traders returned, driving prices back up to 6025. This reversal brought fresh interest in end-of-cycle long positions, capitalizing on the day’s earlier dip.
The session concluded with a significant MOC (Market-on-Close) Buy Imbalance of $1.1 billion, underscoring robust buying pressure into the close.