The SPX gained 1.5 percent on Wednesday, driven by a very predictable Fed that delivered perfectly in line.
The key moment in the press conference was Powell's statement, that he doesn't expect moves of today's size to be common, which send the index above 3800 points.
Overall the scenario played out as we envisioned in our last newsletters and it's time to look forward again as tomorrow will bring many potential drivers that could trigger stock market reactions:
BoE Interest rate decision in the UK, Building Permits/Housing Starts and Philly Fed Index in the US and then later the BoJ Statement in Japan.
Can we take another leg higher? It all depends on tomorrow's data of course, but OPEX opens up a theoretical path as we have 300MM in negative gamma or 600 billion in negative delta expiring, which could potentially induce dealer buybacks and spark a small rally, before traders de-risk again ahead of a long weekend.
Please consult the chart below for the most recent gamma markers and see you tomorrow.
The key moment in the press conference was Powell's statement, that he doesn't expect moves of today's size to be common, which send the index above 3800 points.
Overall the scenario played out as we envisioned in our last newsletters and it's time to look forward again as tomorrow will bring many potential drivers that could trigger stock market reactions:
BoE Interest rate decision in the UK, Building Permits/Housing Starts and Philly Fed Index in the US and then later the BoJ Statement in Japan.
Can we take another leg higher? It all depends on tomorrow's data of course, but OPEX opens up a theoretical path as we have 300MM in negative gamma or 600 billion in negative delta expiring, which could potentially induce dealer buybacks and spark a small rally, before traders de-risk again ahead of a long weekend.
Please consult the chart below for the most recent gamma markers and see you tomorrow.