3 charts we are watching: Make or break

The Market Ear Picture

4353 is the level

4353 is the SPX most important CTA level according to GS. A close below it and CTAs "flip". Projections are: "In a flat tape over the next 5 sessions we estimate -$4b of S&P supply (-$10b over the next month). In a down 2.5 SD tape this supply grows to -$20b over the next week (and -$68b over the next month).". Not as huge numbers as we have seen before, but still enough to be dangeorus. Also note that dealers are now back in short gamma acting as a destabilizing force (ie, will sell a down-tape and buy an up-tape..).

SPX - decision time coming up