Are you ready for the market to make a move? Yesterday may have been a bit boring, but things are about to get interesting. The S&P 500 has been holding steady around the 5,490 level since last Thursday, but with the zero gamma level at 5,520 and liquidity thinning out, anything could happen. Will we see a breakout to 5,550 or a drop to 5,400? The possibilities are wide open.
Despite the lack of movement, the conditions seem more favorable for an upward breakout given the negative gamma regime and lack of liquidity. It wouldn’t take much for someone to try to move the market in the right direction. And while Sunday night hinted at a potential move, yesterday didn’t see much action.
Over in the Nasdaq 100, things are looking a bit more clear with a pennant pattern forming. This could indicate a more definite direction for the index compared to the S&P 500.
With a data dump and significant earnings parade starting today, we can expect some volatility in the market. Stay tuned for more updates on these patterns and how they could impact your investments.