CTAs Puked. Dealers Short Gamma. Squeeze Setup Is Here

Important levels

Yesterday, we pointed out that SPX had printed an inverse hammer and wrote: “SPX is testing key support/resistance levels. Today’s inverted hammer hints at short-term exhaustion, but confirmation is still needed.”

One candle doesn’t make a case, but so far today we’re seeing that confirmation come through. Let’s see how this develops from here, but 6400 (futures) remains a key short-term level.