Lots of market volatility, little direction

From the Market Ear:

SPX – lot of volatility, little direction

SPX has gone from overshooting the 200 day, trading briefly above the negative trend line, to now trading in the lower part of the range that has held since the Nov inflation print close. Note we are below the 100 day. A close below 3950 and 3900 comes into play (50 day is here). Not pretty for the most recent Santa chasers, but do we go for another mean reversion trade soon? After all, the SPX is down 5.5% from the inflation print high…

Welcome back short gamma

SPX is back in short gamma and dealers are back to buying high and selling low.

CTAs can sell as well

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.