SPX Gamma Levels and some Notes on the Week Ahead
https://preview.redd.it/n25xnoxr7h5a1.png?width=1577&format=png&auto=webp&s=1657b2fb29ad44c09daab9ad0262fb78fb01c428
* The end of 2022 is coming and significant breakthroughs in understanding the transmission mechanism of monetary policy to asset markets are expected.
* Two academic papers offer a novel interpretation of the 2022 equity market selloff, linking it to the Federal Reserve's actions on interest rates.
* The papers help explain the relative lack of high volatility events in the equity market this year.
* The commercial real estate market may be showing signs of stress.
* Gamma exposure is currently moderate in the 3900 to 4000 range for the SPX index.
* With quarterly option expiry on Friday, Dec 16th, gamma is expected to grow significantly and help keep markets pinned in this range.
* The market is pricing in volatility for this week with potential catalysts including CPI and the Fed announcement.
* The SPX is currently in a neutral position within the PV bands, but prices may be headed lower.
* The Nasdaq is at the bottom range of its consolidation and the lower PV band is close to the 52-week low.
* Small-cap stocks are breaking to the downside and the lower PV band is close to the 52-week low.
https://www.reddit.com/r/StockMarket/comments/zk0ek5/spx_gamma_levels_and_some_notes_on_the_week_ahead/
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