Options Flow: SPX Sees Pressure as Nvidia Earnings in Focus

talk some options levels Mr Kevin green checking in with half an hour left we're making some decent progress here kg off the lows of the day but uh you know it still is uh plenty of time and it wasn't a pretty session what stood out in what you watch yeah so today's session we actually did see obviously a nice little move to the downside here maybe some uneasiness when it comes to Nvidia but this was actually a scenario Oliver where there's just a lot of long sellers getting into the marketplace those that might have been holding positions but selling out of their positions and the reason why I say that the options uh volume for the most part has pretty much been on par from what we've seen over the last five trading sessions nothing that really signifies that we just had uh a lot of this pressure to the downside when it comes to negative gamma levels now obviously we did hit negative gamma territory today which just means that dealers once they are a little bit off sides on this trade and they have to cover their position that they might have to sell more Futures contracts because of the exposure that they have as the market continues to move to the downside now what we have seen on the volume chart for toss here is a scenario where we had buyers actually stepping in at around the 5560 level and this is an an area that we touched before and actually have been able to bounce off of and it's really the last level that we kind of have and when we saw those buyers stepping in we saw a short covering EV event that actually did take place dealers started to buy uh back those Futures that they sold and we also had those that were in the options Market especially on the put side selling out of those puts that's where we are at right now it's going to be a very hard close though it's going to seem like uh it's going to be very volatile and here's the reason why we can continue to have a melt up you're going to have resistance at 5590 that's the first area that I highlighted here uh we kind of rejected it and now we kind of pushed right through it 5600 is where you're going to have a lot of puts still remaining here for this market after the selloff so are we going to have a wall at 5600 and if so 5610 could be in the cards the balance area for dealers are going to be 5600 uh could you see a pin there especially with Nvidia earnings that could be possible what you do not want to see is individuals getting back into these Hedges going into the close where we could actually have a full reversal and potentially testing that 5570 level and it doesn't seem like it's likely right now but uh we are not out of the woods yet when it comes to this selloff I mean we're still down about half a percent on the session here today it still have some headwinds when it comes to the key levels to the upside okay so today made it a little bit harder on us or things didn't really shift from the market maker perspective it's just now we're kind of starting from a lower Point yeah you know it does make it a little bit harder I just want to highlight this I mean if we go to the open interest chart for toss you can actually see that we continue to fade this 5630 level I actually highlighted here on the volume chart but you can also look at it on the open interest chart because as we go back over those last five trading sessions you can see that we did not last above that level and it continues to be rejected and every time that we reject that level Oliver even though we tested it every time that we reject it uh it it becomes a little bit stronger and that's the the big concern that I'm uh really focusing on here too also notice I have a 20 period moving average on that 15minute uh chart too key moving average if you're trading shorter time frames we could see that that's actually an area of resistance right now as we're trying to test and break above it but uh we did actually have a pretty decent breakdown in uh in trading activity here and on that chart you can see that we tested that 5600 level uh last week on a August 22nd and that was pretty much the last leg that we had to stand on we actually had a full-on m meltdown in this market cuz we were in negative gamma territory no great Point uh was literally looking at that in my chart too because that's exactly where we bounced today so these kind of levels are holding up pretty well from the Thursday low last week as we've been talking here about the market in a Range we're still in that we just flipped to the low end basically from the high end on Monday right yeah and we go to the low end you want to see large volume kind of stepping in and and really trying to bid it up what you really don't want to have happen is US testing the low end and then breaking now we did have a nice little bounce back I would consider that to be a win for us for now obviously we have some earnings announcements that's going to be a huge mover either to the upside or downside uh I would still say overall if you're looking at the composition of this Market is still bullish we talk about liquidity all the time I don't have a liquidity chart here but actually liquidity is still looking good we had contraction to start the week off we actually did have that fill out out and actually improve yesterday's session and even today's session if you're kind of just high level looking at the market even though we saw some strong selling activity taking place there was still a pretty decent and and and liquid Market in order to do so that's ultimately bullish here even though you had some selling activity taking place uh but we have to really try to break Above This 5630 level very quickly I mean we don't really want to stay below it over the next two or three trading sessions and if we end the week below 5630 Oliver I think that gives Bears more confidence that they can knock this Market down and if they are able to knock it down we make a lower high on that on that chart we kind of are starting to hinge a little lower on the the daily chart and that's where you might say okay maybe valuations are a little bit too rich Nvidia didn't impress us the way it did that we expected and that's where you can get this selling uh activity taking place so we have maybe two more days of this type of compressed action until you start questioning uh this move that we've had to the upside here over the last week okay all right uh so we couldn't make the move we needed to to put us in a safer place right we had the chance to uh set up on a higher perch and uh we fell back out so quite a uh quite a chop uh here but the range analysis has worked it's been useful because we haven't broken out of that range uh but as we've kind of said all along is that you're going to probably need a big push so either inidia this afternoon or data tomorrow thank you Kevin green e