Last week saw market consolidation, with both the SPX and NDX inching up less than 1%. A sudden Wednesday drop during VIX expiration erased gains from Friday to Tuesday, with only a partial recovery on Thursday.
While news blamed the 0DTE, our understanding points to VIX expiration and dealer positioning. The dominance of 0DTE in the options market makes deciphering options flow and its impact on market positioning by dealers and market makers crucial in 2024.
The current price action echoes July 2023, setting the stage for a three-month downtrend into November. We accurately predicted that top, navigated relief rallies amid the decline, and pinpointed the bottom on October 27th. Can we successfully anticipate this potential top again?
Join us in this video for a deeper dive into these market dynamics!
As always, trade safe and invest wise!
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Video Link:
https://youtu.be/w3XCfgdUcsU?si=c6avN2XnXi2lxFCr
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