In our free Discord channel, we alerted a bit early that we once again had an unusual gamma (GEX) setup, with SPY and SPX indicating a positive 5500/550 major cluster while QQQ indicated a large negative 459 cluster. Shortly after the open, QQQ’s negative tilt took everything lower, and eventually we saw a large decrease in the SPX 5500 level to correspond with QQQ’s dominance.
This wasn’t unexpected as we indicated in last night’s newsletter, where we indicated potential upcoming resistance areas and you can even see the middle Keltner rejection for SPX on the chart below:

This rally into Keltner resistance also coincides with an SPX Dealer Cluster Zone at 5450, though option volume for that day ended up with focus around 5465. Either way, we are simply flirting with an area identified as a Dealer Cluster Zone, a nice coinciding factor with Keltner resistance.

Evaluating the recent price action of QQQ shows a retest of the declining middle Keltner and room below down to a retest of 442-443, if gravity really starts to exert itself.

QQQ is also in an upper dealer cluster zone where we might see some sort of fade or retracement, thought volume at the 466 area gives reason to expect a potential test of 466 beforehand.

We do have some major retail names reporting in the AM (WMT, *cough*) as well as the usual jobless claims, so it will be interesting to see if the market decides to punish bulls, or if we perpetuate the resilient bullish pressure that we’ve mostly seen since Monday.

We also invite you to check out our community discord for our latest market conversations and trade idea discussions around the more immediate picture presented by GEX.

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Daily Newsletter: Thursday, August 15

Daily Newsletter: Friday, August 16