Market 07/11: Stocks rally, dollar weakens ahead of CPI report

The market continued a fairly stable trading session yesterday with “mean reversal” continuing as predicted. Both SPX and QQQ successfully defended their gamma flip levels at 4400~SPX and 365~QQQ to help the market stay in the positive gamma zone, keeping VIX stable after spiking in the morning. Positive gamma flow, although not too large, occurred steadily throughout the day and created enough pressure to pull the index higher toward the end of the session. Notably, most of yesterday's selling activity in mega-cap tech came from NASDAQ block rebalance to reduce the influence of the “magnificent seven” group on the entire NASDAQ 100 basket.