Market structure looks healthy heading into the weekend.
VIX is below 15, MOVE remains subdued, and breadth is still strong with around 72% of stocks trading above their 200DMA. Dealers are positioned long gamma, reducing the potential for volatility to accelerate.
The McClellan Oscillator has cooled but remains positive, while there are still no Hindenburg signals.
The Put/Call ratio at 1.09 points to slightly higher hedging, but nothing alarming. Options flow is also mildly negative at around -$21M.
Overall, the risk-on environment remains intact. This kind of setup favors buying controlled dips rather than chasing breakouts.
Keep an eye on market breadth—if participation starts shrinking, laggards could become the next rotation play. 👀
VIX is below 15, MOVE remains subdued, and breadth is still strong with around 72% of stocks trading above their 200DMA. Dealers are positioned long gamma, reducing the potential for volatility to accelerate.
The McClellan Oscillator has cooled but remains positive, while there are still no Hindenburg signals.
The Put/Call ratio at 1.09 points to slightly higher hedging, but nothing alarming. Options flow is also mildly negative at around -$21M.
Overall, the risk-on environment remains intact. This kind of setup favors buying controlled dips rather than chasing breakouts.
Keep an eye on market breadth—if participation starts shrinking, laggards could become the next rotation play. 👀