A Tweet is All It Takes: Short Gamma Update $SPX

Dealers are still short gamma until the market is over 2900. Based on last several days this indicates 2900 could be a decent topping target. Large Put open interest at 2850 may provide support. Because dealers are short gamma then will fuel the market higher or lower when the direction gets set. In summary: volatility is likely to continue unless markets push through 2900.

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if volatility gets hit again that could push markets back to pre-tweet highs. holding onto puts right now is expensive, as those gets sold dealers buy back hedges = markets up.

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We're now close to zero gamma...we need a catalyst to determine next move. Risk again is amplified to the downside because we're still under the 2900 volatility trigger. above 2900 should just be a grind higher, probably not a big rip.