SPY Technical Analysis & GEX Insights

Market Overview
SPY is experiencing a pullback within an overall uptrend structure. The price is testing a key support zone near $600, while options gamma positioning indicates pivotal areas for potential reversals or continuation moves.

Technical Analysis
1. Trend Analysis:
* SPY recently broke below a short-term ascending wedge pattern, signaling a corrective phase.
* Price is now consolidating near $600, a significant support level.
2. Support and Resistance:
* Immediate Support: $600 (HVL zone and round number psychological level).
* Secondary Support: $595 (put wall support and prior consolidation zone).
* Resistance Levels:
* $606 (local resistance within the channel).
* $610 (key breakout level / gamma resistance).
3. Indicators:
* MACD: Bullish crossover forming, suggesting a potential reversal if momentum sustains.
* Stochastic RSI: Rebounding from oversold conditions, aligning with near-term bullish sentiment.
* Volume: Increasing on the pullback, indicating participation by buyers at lower levels.
4. Price Action Insights:
* A hold above $600 would favor a bounce toward $606-$610.
* A breakdown below $600 could lead to a sharper decline toward $595 or $590.

Gamma Exposure (GEX) Analysis

1. Critical GEX Levels:
* Call Walls:
* $610: Major resistance with 59.88% call gamma exposure.
* $620: Highest positive gamma wall, marking the bullish target for continuation.
* Put Walls:
* $600: Strong put support level, aligning with HVL.
* $595: Secondary put gamma support, reinforcing downside defense.
2. Options Oscillator Metrics:
* IVR (Implied Volatility Rank): 17.7, indicating relatively low volatility.
* IVx (Implied Volatility): 16.4% average.
* Call/Put Dollar Ratio: 83.9% skewed heavily toward puts, reflecting bearish sentiment.
3. Implications:
* Strong gamma concentration at $600 suggests significant market maker activity, potentially stabilizing the price.
* A close above $606 would align with unwinding of bearish positions, opening upside potential toward $610 and $620.

Trade Setups
1. Bullish Setup:
* Entry: Above $606.
* Target: $610, $620.
* Stop Loss: Below $604.
2. Bearish Setup:
* Entry: Below $600.
* Target: $595, $590.
* Stop Loss: Above $602.

Conclusion
SPY is trading at a pivotal support zone near $600. Options gamma positioning and technical indicators suggest potential for a bounce, but a break below $600 could accelerate bearish momentum. Monitor the $606 resistance for upside confirmation and $595 for downside risk.

Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.