Friday's Liquidity Vortex May Spark $135 Billion In Forced Selling

Tyler Durden's Photo
by Tyler Durden
Friday, Dec 16, 2022 - 10:55 AM

Earlier today we discussed why today's violent market action - which was hardly predicated by the latest hawkish central banks developments, all of which were extensively telegraphed and generally priced in - may have been a frontrunning of the hobbled market conditions and technicals that await traders tomorrow during the massive, $4 trillion option expiration.

And while Nomura cross-asset strategist Charlie McElligott did a great job explaining both why stocks may have plunged today purely on technicals... and why tomorrow's 0DTE option action may "magically' spike them right back up, there is another reason why some traders turned tail today.