Market 06/21: Market weakens, Powell maintains "hawkish" stance ahead of testimony

US stock market showed weakness in yesterday's trading session with light rotation out of all sectors, most long put hedges taken profit right from the morning, pushing indices up before SPX hit call wall at 4400 and began sell-off. However, strength of stocks in the “AI Mania” block overcame the morning drop, combined with 0DTE buying pulling the market back temporarily.

Notably, most of yesterday's call buying was 0DTE, meaning although gamma-sensitive and having significant market impact, it lacks the ability to shape market structure long-term. Thus, when SPX was rejected at 4400 again yesterday afternoon, support from this call volume disappeared markedly and indices returned below opening price.