Midday market 01/05: Macro data continues to go against FED expectations

The market erased nearly all gains from yesterday's trading session in the morning with SPY pushing below 380 before finding buyers and attempting to recover. Pressure on the market remains very high after J.P. Morgan announced retail blocks sold $3.1 billion in stocks in the last week of 2022, mostly from Tesla, and it was the 3rd largest retail outflows week in history.

Today's selling pressure is spread quite evenly across all sectors except energy, mostly driven by a sudden increase in hedging demand in the morning amid low liquidity. Investors are relying on macro data, especially the morning employment report, to prepare for the CPI report on the 12th. Short-term negative gamma flow mainly focused on the index pushed SPY back to the 380 put wall before starting to fall into daily gamma neutral state.