OANDA:SPX500USD   S&P 500 Index
Markets looked through growth concerns today, and decided to take the collapsing oil price (-6.5%) as a positive, which sent growth stocks (+3%) sharply higher, while the broad market (SPX) rose 2.1% and airlines were among the strongest gainers (DAL +8.7%, UAL +9.2%, LUV +4.9%).

More support came from a “positive” surprise in inflation data (PPI up “only” 0.8% MoM and 10% YoY).

On the geopolitical front the situation at least didn’t get worse, which is all you can ask for nowadays it seems.

On the other side of the spectrum the Empire State Manufacturing index dropped to -11.8 points from 3.1 in February, which is rather difficult to reconcile with the-glass-is-half-full approach.

Tomorrow will be a busy day and investors will focus mainly on the FOMC Statement, but also Retail Sales, Retail Inventories and Crude Inventories will be closely watched.

Total dealer gamma increased by 265MM to -634MM and it will be interesting to see how things play out after tomorrow's FOMC statement. Looking further ahead: On Friday about -190MM gamma notional will have been expired, which could support another leg higher, if those hedges don't get replaced (which is a possibility, as puts are getting cheaper again).

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