SPY Trapped in Gamma – Big Move Loading or Just Dealer Chop?
📊 SPY GEX Daily (Options Sentiment Breakdown)
SPY closed at $589.39, and we’re now seeing tight compression between call resistance at 592–595 and heavy put walls down at 586 and 580. Gamma is stacked on both sides — a dealer tug-of-war. Unless we break cleanly above or below this zone, expect whipsaw chop.
GEX Breakdown:
🟩 Call wall at 595, with strong dealer hedging from 592 up to 600.
🟥 Massive negative GEX starting at 586 → 580 → 575, all with dense put walls (–79.88% at PUT Support).
🔻 IVR is 18 and falling – nobody’s paying up for protection yet, but things could move fast once they do.
💡 Options Playbook (Based on GEX):
Neutral-to-Bearish: Fade pops near 592–595, use 595c/600c credit spread or play 585p/575p vertical if 586 breaks.
Bullish Flip: If we break and hold over 595, gamma flips positive fast → play Jul 19 600c or 595/605 spread.
This is a gamma box — price likely stuck 586–595 unless volume shifts dealer hedging or macro breaks out.
🕵️♂️ 1H Price Structure (Swing & Intraday Planning)
SPY 1H still showing weak structure. Multiple CHoCHs and BOSs bouncing around the same zone. Price got rejected from the purple supply at 592, and is now hovering around 589–590, still trapped under a descending trendline.
What stands out:
📉 Structure = lower highs + broken BOS → short-term bearish.
📦 Supply pressure between 590.5–593.9, demand sits down at 573–576.
💣 Bearish readings across BBP, MACD, Stoch — and market breadth thinning.
📈 Swing Bias:
Short under 590–592 → target 586 first, then 580 if momentum kicks in.
Bullish case only resumes on clean break above 595.
📊 Intraday Plan:
Fade pop to 590.5–592 for scalp short (look for lower highs).
Bounce off 586 is playable for scalp long — but keep stops tight.
Until SPY breaks out of this gamma trap, you want to scalp or spread trade with discipline. No need to swing for home runs here.
🧠 Final Thoughts
SPY is pinned between high call resistance and aggressive put support. The GEX box says: "Be patient or get chopped." We need either macro news or volume spike to break the hedging stalemate. IV is low, so positioning ahead of a breakout (via spreads or small directional bets) could pay off — just manage size tightly.
⚠️ Disclaimer:
This is educational commentary only. Always manage your own risk, and never trade based on someone else’s analysis alone.
