Art of Speculation
Art of Speculation|Jun 12, 2026 15:42
Add an important option structure change After experiencing several consecutive days of negative Gamma environment this week, SPY and QQQ barely returned to the positive Gamma range at the close today. This change is a shift in market makers' hedging behavior from the previous trend of hitting and pulling the market, back to a buffering mode of buying low and selling high. That is to say, the market's fluctuation amplifier has been turned off and the stabilizer has been restarted. This is an important structural reason supporting today's continued rebound. On QQ's 15 30 minute chart, from the 10 day moving average to the 50 day EMA, all short-term and long-term moving averages turned upward yesterday, technically breaking the short-term downward trend since the beginning of this week. IWM has the strongest technical structure among the three indices today. It successfully stopped falling near the GEX support level of 280 and the 50 day EMA of 278, and closed above the key GEX intensive area of 290 today. If we can hold on to 290, the next bullish target is 300, and now the highest level during the market view is 295.76. There is one more point to add, as the market has risen today, the trigger selling point for CTA quantitative trading has moved up to around 7320. That is to say, as long as the S&P does not fall below 7320, CTA's mechanical stop loss order will not be triggered, providing an additional safety cushion for the rebound.
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