Keep Calm and 4k On

Bears don't get to convinced a sell off is near.

Bulls will be buying the dip for the entire next year.

4K is the level, premium the harvest.

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In this idea I present to you a level everyone should be aware of because my prediction is that we will end 2023 around 4k.

I was browsing the SPX options chain for 2023 and 4k is by far the highest open interest across all major expires like quad witching.

This shouldn't be a surprise as it has been a magnet since the Archegos margin call.

I jokingly call it the Archegos Gap.

But after extensive research into SLR and ON Reverse Repos it is also a major level the Fed shifted policy in 2021.

Every directional shift higher or to lower from 4k has correlation with the Archegos Gap.

Most notable are:

Inverted Yield Curves

Hyper Inflation

Debt

DXY

The market is starting to wake up to the idea equities will be flat for the entire year.

Comment:

Comment:

TSLA forming an inverse H&S. Idea will be posted should TSLA confirm neckline.

Comment:

Final Thoughts on intraday today.

Range bound to 20D into PPI tomorrow at 8:30AM.

Event Volatility will roll into next week.

CPI into FOMC followed by Quad Witching Expiry.

Through all the selling the past few days Gamma Exposure bounced off zero gamma on dealer directional exposures.

Comment:

Levels going into FOMC tomorrow and quad witching this week.