The Pre-Market Report Friday 11th July
Gauging Gamma for Friday's Trading-- With Downside Risk on NQ
After an overnight pullback from all-time highs, the market finds itself positioned within a significant gamma-supported zone. Our analysis of the GEX profiles for both the S&P 500 (SPX) and Nasdaq 100 (NDX) across all expirations shows overwhelmingly positive gamma above current price levels. This structure suggests that market makers' hedging activities are likely to keep volatility subdued and pull prices towards strikes with high positive gamma.
Note that yesterdays pivot at 6277 and NQ downside target 1 were tagged perfectly overnight during Asia trading on tariff news, so I’ve left these on the chart as they made decent buy levels for Globex this morning.
This positive gamma setup strongly supports the idea of a potential drift higher, with eyes on reclaiming the most recent swing highs from the European session. For both indices, the primary expectation is for prices to be drawn towards major call resistance levels, which represent significant concentrations of positive gamma. While a surge in volatility is always a possibility, the current VIX GEX profile also suggests that stability should prevail, provided key support levels hold true in the indices.
Key Levels to Watch for SPX/ES & NDX/NQ
For the S&P 500 (SPX) and its futures equivalent (ES), here are the crucial levels for today's trading:
Call Resistance / Primary Target: SPX 6300 → ES 6344
Intraday Pivot Zone: SPX 6265 → ES 6309
Key Support Zone: SPX 6240-6245 → ES 6284-6289
Similarly, for the Nasdaq 100 (NDX) and its futures (NQ), keep an eye on these significant points:
Call Resistance / Primary Target: NDX 23000 → NQ 23183
Intraday Pivot Zone: NDX 22800 → NQ 22983
Key Support Zone: NDX 22560 → NQ 22743
Note the weak low left during Globex and the significant negative GEX shown as DT1 on the NQ chart (first post). In my mind, this is they key downside risk and target should support break, as we find ourselves currently below the pivot.
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Trade Safe
-Z
