S&P500 in capitulation...?
$Micro 10-Year Yield - main 2205(10Ymain)$
Markets expect the Federal Reserve, which meets this week, to raise rates by 50 basis points to curb inflation.
It would be the largest rate increase in 22 years.
Meanwhile, 10-year Treasury yields are now hovering around 3%, levels we haven't seen since 2018.
Traders expect the Bank of England to also hike rates at its meeting on Thursday.
Much of this pricing would be incorporated into current prices.
And participants would likely have fewer reasons to buy put options.
So if the markets don't follow the downtrend, a positive hedge flow could spur a strong rally...
The $4,000.00 level of the S&P 500 could be the current lower boundary.
Remember that we remain in a context of short gamma, with brutal movements on both sides.
Thanks, for reading.
@Do_Trading
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