Wednesday 17 April
Good Morning,
A quiet day yesterday but the major put support held above 5125 for the whole day, the pre market is at 5072 at the time of writing this fits in with my thinking that we hold above 5100 Wednesday and Thursday based on options positioning, we remain in negative gamma however so nothing is assured and I am not trading it. Friday is not as supportive, see below for levels and Gex data. Below 5035 don’t go long. I’m not taking any long trades until 4980 for an oversold bounce,
As we discussed here in late March there are liquidity issues in April due to tax selling, this causes bank deposits to decrease reducing overall liquidity in the markets. The tax filing deadline in the U.S. is April 15th (apart from Maine and Massachusetts 17th) so liquidity should slowly return over the coming weeks. Central Bank liquidity has been increased lately (see yesterdays post).
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