S&P500 Daily Action Areas & Price Targets 10/11/26
S&P500 Daily Action Areas & Price Targets 10/11/26
***QUOTING ES1!(Z CONTRACT LEVLES) FOR CASH US500 EQUIVALENT LEVELS, SUBTRACT POINT DIFFERENCE***
MONTHLY-WEEKLY& DAILY LEVELS
MONTHLY BULL BEAR ZONE 7275/35
MONTHLY RANGE RES 7980 SUP 7361
WEEKLY BULL BEAR ZONE 7300/7290
WEEKLY RANGE RES 763/511 SUP 7170/50
DAILY BULL BEAR ZONE 7520/30
GLOBEX RANGE SUP 7536/7494 RES 7619/61
GAMMA FLIP 7590
DELTA FLIP 7324
CALL WALLS 7636
PUT WALLS 7507/7457
DAILY STRUCTURE - TBC
WEEKLY STRUCTURE - OTFL - 7746
MONTHLY STRUCTURE - TBC
VIX BULL BEAR ZONE 18.72
VVIX-to-VIX ratio, currently hovering at approximately 4.94, comfortably falls within the historically typical range of 4.0 to 6.0. This suggests that volatility expectations are in a neutral zone, reflecting neither panic nor extreme contrarian sentiments.
PRIMARY TRADES & TARGETS
LONG ON REJECT/RECLAIM DBBZ TARGET RTH CLOSE>DAILY RANGE RES
***ADDITIONAL SETUPS & TARGETS HIGHLIGHTED ON THE CHARTS***
(I FADE TESTS OF 2 SIGMA LEVELS ESPECIALLY INTO THE FINAL HOUR OF THE NY CASH SESSION AS 90% OF THE TIME WHEN TESTED THE MARKET WILL CLOSE ABOVE OR BELOW THESE LEVELS)
SPX PUT/CALL RATIO 1.11 (The numbers reflect options traded during the current session.) A put-call ratio below 0.7 is generally considered bullish, and a put-call ratio above 1.0 is generally considered bearish.
JHEQX Upside cap (~7,920–7,950): Dealer gamma hedging at this call strike creates resistance, with market makers likely selling futures into strength and limiting volatility. Downside cushion (~7,270): If SPX drops 5% into Q4, long put gamma may force dealers to buy futures as the index falls, helping stabilize prices. Expiration: December 31, 2026. Strong pinning effects are likely near key strikes into year-end expiration.
DEC2025 OPEX to DEC2026 OPEX is 945 points giving us a range of [5889,7779]
Notes On Structure Implications
Balance: This refers to a market condition where prices move within a defined range, reflecting uncertainty as participants await further market-generated information. Our approach to balance includes favouring fade trades at the range extremes (highs/lows) while preparing for potential breakout scenarios if the balance shifts.
One-Time Framing Higher (OTFH): This represents a market trend where each successive bar forms a higher low, signalling a strong and consistent upward movement.
One-Time Framing Lower (OTFL): This describes a market trend where each successive bar forms a lower high, indicating a pronounced and steady downward movement.
GOLDMAN SACHS FICC & EQUITY TRADING DESK VIEWS
THE TAKE: BROAD BREADTH SURGE (423/500 UP) MEETS HISTORIC VVIX CRUSH AS POSITIONING COILS
US equities mounted an explosive across-the-board recovery on Monday, headlined by violent right-tail factor moves: Nasdaq-100 surged +3.40% to 27,907, the Philadelphia Semiconductor Index (SOX) ripped +6.8% (rallying aggressively despite Nvidia trading -4.3% on weekend headlines), Russell 2000 gained +3.18% to 2,841, and the S&P 500 advanced +2.35% to close at 7,549.
Breadth was exceptionally broad, with 423 out of 500 S&P constituents closing in the green. The catalyst mix centered on:
Middle East Geopolitical De-escalation: WTI Crude tumbled -4.23% to $87.03/bbl (Brent broke back toward $85/bbl) following President Trump's public remarks to CNN that direct military strikes on Iran are "highly unlikely" conditioned on Tehran entering a comprehensive agreement.
Historic Volatility Implosion: The VVIX (volatility of VIX) registered its 3rd largest single-day percentage decline in the past 20 years, triggering a rapid collapse in cross-asset implied volatility and option skew.
The Coiled Positioning Baseline: Goldman Sachs Prime Brokerage confirms that US Info Tech net allocation collapsed to 14.4% of total US net market value—plumbing multi-year lows at the 1st / 1st / 3rd percentiles across 1-year, 3-year, and 5-year lookbacks, respectively.
While High-Touch desk flow saw constructive covering and selective long accumulation across technology, trading floors remained cautious ahead of Tuesday's October CPI release (GS GIR forecasting +16 bps MoM Core CPI) and key upcoming AI earnings reports (CoreWeave CRWV, Nebius NBIS).
CROSS-ASSET BENCHMARK DASHBOARD
S&P 500 (SPX): Closed at 7,549.00 (+2.35%) | MOC $4.0B to SELL | VIX crushed -22.31% to 19.92 | 1-Week Implied Straddle: 1.50%
Nasdaq-100 (NDX): Closed at 27,907.00 (+3.40%) | Paced by semiconductor and cloud recovery
Philadelphia Semiconductor Index (SOX): Surged +6.80%, decisively decoupling from Nvidia (
NVDA-4.3%)Russell 2000 (RUT): Closed at 2,841.00 (+3.18%) | Small-cap cyclicals squeezed on easing yields and oil
Dow Jones (DJI): Closed at 52,389.00 (+2.15%) | Broad participation across industrial and consumer components
US 10-Year Treasury Yield: Ticked up +1 bp to 4.87% | Yields stabilized following the duration rally
WTI Crude: Plunged -4.23% to $87.03/bbl | Eased on geopolitical de-escalation statements
Gold: Rose +1.67% to $4,138.00/oz | Sustained institutional bid alongside weakening USD
Bitcoin: Up +1.00% to $74,807.00 | Stabilized following last week's tech flush
US Dollar Index (DXY): Slid -61 bps to 101.67 | Softened as oil and event risk premia compressed
PRIME BROKERAGE POSITIONING & GIR VALUE ASYMMETRY
Info Tech Multi-Year Allocation Floor:
US Info Tech Net Allocation: Has dropped to 14.4% of total net market value.
Historical Percentiles: Sits at the 1st percentile 1-year, 1st percentile 3-year, and 3rd percentile 5-year.
Semiconductor Positioning: Has fully round-tripped all 2026 gains, completely de-risking investor balance sheets.
GIR Flag: Tech is "Clearly Oversold":
AI Compute (Broadcom
AVGO, NvidiaNVDA): Valuations have compressed to levels that implicitly discount zero top-line growth past 2027.Semicap Equipment (Applied Materials
AMAT, Lam ResearchLRCX): Current share prices price in zero incremental wafer fab equipment / capex expansion beyond 2027, an outcome GIR views as highly improbable.Memory (SK Hynix, Samsung): Trading at an outright discount to total tangible book value, creating significant downside support.
SYSTEMATIC FLOW MECHANICS & BUYBACK DESK DYNAMICS
Medium-Term CTA Systematic Pivot: S&P futures settled at 7,549, crossing just above the crucial 7,548 medium-term systematic threshold. Holding above 7,548 is vital to halt programmatic model selling.
Closing Imbalance & CTA Selling Bias: S&P Market-on-Close (MOC) was $4.0B to SELL. Systematic CTA models remain projected net sellers of US equities across all scenarios over the coming week unless spot pushes materially higher.
Corporate Repurchase Open Window:
Current Window: ~90% of the S&P 500 is in an open execution window.
End-of-Week Window: Projected to hit ~93%.
Flow Impact: Open corporate buyback execution provides strong daily VWAP demand, matching favorable November seasonality (one of the desk's most active months of the year).
DERIVATIVES SURFACE: HISTORIC VVIX UNWIND & OPTIONS FLOWS
VVIX Implosion: The volatility of VIX printed its 3rd sharpest single-day collapse in 20 years, collapsing skew and crushing fixed-strike volatilities across SPX and NDX.
Institutional Put Spread Unwinds & Call Replacements:
Clients aggressively unwound front-month downside hedges: sold 56,000 contracts of the 13Nov 730/715 Put Spread and sold 22,000 contracts of the 27Nov 720/700 Put Spread.
Reallocated premium into year-end topside: bought 28,000 contracts of the SPY 18Dec 775/800 Call Spread.
Single-Stock Convexity (Nvidia): Two-way option volume surged in
NVDAdespite spot softness, highlighted by an institutional restructuring that rolled 52,500 contracts of the 19Feb 210/255 Call Spread down to the 195/245 strike corridor.Desk Tactical Recommendation: Overweight Russell 2000 (
IWM) topside into month-end. Driven by deeply washed-out positioning, high short interest, CTA buying models in small-caps, and historically cheap volatility:Recommended Expression: Outright IWM 27Nov 290 Calls.
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Past performance is not indicative of future results.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!