Neg Gamma

Outlook 06/04: Stock futures fell Thursday as traders dumped chip stocks following an underwhelming report from Broadcom, while they also monitored the latest developments in the Middle East. We’ve had nine consecutive up weeks for the SP500, and naturally that does reflect positive momentum. Short term momentum turns negative now, intermediate term, long term, still bullish. These small selling doesn't mean we'll end in dramatic fashion, but we've some sell signals from inventories outflows that suggest this 'Big Long' could end soon. NFP Friday's close will be key ahead institutional rebalances.

ESM26 (Jun2026): YVAH 7594 YPOC 7579 YVAL 7567 GAP 7567

/ES Plan: Yesterday market closed bearish, but overnight looks balanced, still moving below previous value/range, so these're the opening and initial balance options for current session:

A) If market remains above HVE 7542 with bullish internals/delta, buy towards YVAL-GAP 7567 and YVAH 7594 magnets.

B) If market moves below HVE 7542 with bearish internals/delta, sell towards ONL 7524 HVE 7503 and GAP 7494 magnet.

Note: Overnight is 100% bearish. The expected action is a counter-auction. Failure to see the counter-auction would be an indication of potential bearish trend day. keep in mind when gamma flips negative, below zero, those same hedging flows reverse, adding selling pressure during declines, adding momentum in bearish direction. 

Market Movers

10:00 Fed's Bowman Speaks

11:30 US 4-Week Bill Auction

13:10 Fed's Daly Speaks

 

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