S&P 500 Holds Steady at Crucial Support Level on Triple Witching
The S&P 500 (SPX) is steady at the crucial support level 5113. If the index maintains this level, it could retest the 5200 zone and potentially aim for 5350 upon breaking out. However, a fall below 5113 could lead to a retest of 5050/4950. We have identified sizeable dark pool institutional buying levels indicated at 4950, so they either protect that zone if it's tested or the market makers want it at 4800/4600.
SPX is undergoing a rebalancing today, with Super Microcomputer (SMCI) replacing Whirlpool (WHRL) and Deckers Outdoor (Deck) replacing Zions Bancorporation. SMCI has already seen a remarkable 1100% increase this year. Despite some scepticism about its ability to continue growing, funds will need to purchase shares of SMCI, which could lead to a situation reminiscent of Tesla's growth in 2020 when it joined the SPX and surged by 170%.
Today also marks a "Triple Witching Day" on Wall Street, where stock options, market index options, and market index futures all expire simultaneously, potentially leading to increased market volatility and unexpected pricing movements. This quarterly event presents opportunities for traders and algorithms to adjust positions, with around US$5 trillion worth of securities set to expire. Investors are advised to exercise caution and remain vigilant amidst the heightened trading activity, reminiscent of the famous warning to "beware the Ides of March."
Over the next few weeks, we will closely monitor the performance of Bitcoin and the S&P 500 and the impact of the latest additions to the index.
SPX is undergoing a rebalancing today, with Super Microcomputer (SMCI) replacing Whirlpool (WHRL) and Deckers Outdoor (Deck) replacing Zions Bancorporation. SMCI has already seen a remarkable 1100% increase this year. Despite some scepticism about its ability to continue growing, funds will need to purchase shares of SMCI, which could lead to a situation reminiscent of Tesla's growth in 2020 when it joined the SPX and surged by 170%.
Today also marks a "Triple Witching Day" on Wall Street, where stock options, market index options, and market index futures all expire simultaneously, potentially leading to increased market volatility and unexpected pricing movements. This quarterly event presents opportunities for traders and algorithms to adjust positions, with around US$5 trillion worth of securities set to expire. Investors are advised to exercise caution and remain vigilant amidst the heightened trading activity, reminiscent of the famous warning to "beware the Ides of March."
Over the next few weeks, we will closely monitor the performance of Bitcoin and the S&P 500 and the impact of the latest additions to the index.