Morning market:
Monday's trading session started off poorly as the bond market in Europe and especially in the UK had strong volatility, dragging down investor confidence in financial markets in general. This combined with President Biden announcing a ban on exporting high-tech chip products to China caused semi-conductors companies and the entire tech sector to be sold off right from the morning open, pulling SPY right to the put wall 360. Market seemed to find support slowing the fluctuation range for about 1 hour before SPY 360 Put holders liquidated positions to roll down. The subsequent roll hedge demand created momentum pushing SPY through put wall 360, which had weakened considerably by then, and caused VIX to push through high-of-day. It can be said that initial put holders had no intention of giving up put wall 360 today, but pressure from macroeconomic conditions greatly affected the liquidity environment and investor psychology.
SPX blocked at 3620 this morning while trying to rally and immediately pushed back through put wall 3600
Comments (0)
No comments yet
Be the first to comment
Login to comment