US stock market opens Thursday's trading session with focus on September CPI report. Before today, gamma flow has been mostly bullish with volatility sellers almost completely absent over the past 4 days. As noted in newsletter 10/05, most hedges have been shifted to the first week of November to cover FOMC, creating a "quiet" period in the market that allows capital flows to recover. SPX call wall has been pushed up to 4500 while volatility hits bottom around upper 4425.
However, what to note over the past 2 days is that liquidity in general continues to trend downward with most investors deciding to sit out of the market since yesterday.
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