It's a friendly start into the new week, amidst encouraging news and economic data.
The S&P 500 futures is trading about one percent above fair value as market participants have been heartened by reports indicating Covid restrictions in China are being rolled back.
Also, there is a buzz around many Chinese-listed stocks following a report that regulators are ending their probe of Didi and there is also some reporting that suggests the US is considering lifting tariffs on some imported goods from China.
Meanwhile China's May Caixin Services PMI rose to 41.4 from 36.2 points and Hong Kong's May Manufacturing PMI climbed to 54.9 from 51.7 previously.
Separately, Tesla is rebounding pre-market after Elon Musk clarified that the company total headcount will increase, but that salaried positions should be fairly flat.
Europe is rather quiet with the German market closed for a holiday. The only major event will be a no-confidence vote around 13:00 PM (Eastern) which Boris Johnson will have to face.
The new week seems to be rather uneventful on paper, as we have entered the Fed blackout period (June 4–16) and data points will also be limited.
Federal Reserve policy limits the extent to which staff and FOMC members can speak publicly during blackout periods.
Gamma Discussion
From a gamma perspective the situation is rather quiet, as fresh open interest data data does not show much change in options positioning.
The SPX will most likely remain in the range between 4050 and 4200 for the eight day in a row, without external impact to the market, as both markers provide solid support and resistance.
https://www.tradingview.com/x/rfJIbhMG/
Chart above: The VIX index, which is trading at sort of a lower bound, which could limit gamma-induced upside for stocks.
The S&P 500 futures is trading about one percent above fair value as market participants have been heartened by reports indicating Covid restrictions in China are being rolled back.
Also, there is a buzz around many Chinese-listed stocks following a report that regulators are ending their probe of Didi and there is also some reporting that suggests the US is considering lifting tariffs on some imported goods from China.
Meanwhile China's May Caixin Services PMI rose to 41.4 from 36.2 points and Hong Kong's May Manufacturing PMI climbed to 54.9 from 51.7 previously.
Separately, Tesla is rebounding pre-market after Elon Musk clarified that the company total headcount will increase, but that salaried positions should be fairly flat.
Europe is rather quiet with the German market closed for a holiday. The only major event will be a no-confidence vote around 13:00 PM (Eastern) which Boris Johnson will have to face.
The new week seems to be rather uneventful on paper, as we have entered the Fed blackout period (June 4–16) and data points will also be limited.
Federal Reserve policy limits the extent to which staff and FOMC members can speak publicly during blackout periods.
Gamma Discussion
From a gamma perspective the situation is rather quiet, as fresh open interest data data does not show much change in options positioning.
The SPX will most likely remain in the range between 4050 and 4200 for the eight day in a row, without external impact to the market, as both markers provide solid support and resistance.
https://www.tradingview.com/x/rfJIbhMG/
Chart above: The VIX index, which is trading at sort of a lower bound, which could limit gamma-induced upside for stocks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.