With the S&P Call Wall dropping again, and right to our long-suspected 4320 level (where the short call is located on the major JPM Collar Roll - known as JHEQX - which rolls this Friday, June 30), market structure has taken center stage as critically important.
As SpotGamma lays out below, this event leading into Friday can easily have a strong influence on market price action if other structural indications are aligned.
Here was our view of Friday's SPX gamma landscape, which foreshadowed this convergence of the SPX Call Wall with the top of the JPM Collar. These are unusual circumstances with the Call Wall already slightly under the price and moving lower. In isolation of other contexts, this development is a bearish directional signal.
