Lanceljx
12-20 12:18

Why 6,800 matters

It is a key psychological and options-heavy strike.

Without a fresh catalyst or strong mega-cap leadership, rallies into this zone tend to meet supply.

Pinning vs swings

Base case: Pinning dominates. Heavy near-dated options exposure typically pulls price towards the strike into the close, producing narrow ranges and late-session mean reversion.

Alternative: Swings dominate only if volatility expands, for example via a sharp move in yields or a large-cap driven flow. Even then, upside breaks risk being brief without volume follow-through.

Expectation

Intraday probes above 6,800 are possible.
A sustained close above 6,800 requires clear volume expansion.

Risk-reward currently favours patience over chasing a breakout.

Bottom line: Pinning pressure slightly outweighs directional conviction today, making a marginal or failed break more likely than a decisive close above 6,800.

Record Options Expiry Meets BoJ: Can S&P 500 Close Higher Tonight?
Wall Street faces an unprecedented “quadruple witching” this Friday, with record options expirations tied to roughly $5 trillion in S&P 500 exposure and another $880 billion linked to single stocks. The Bank of Japan raised its benchmark interest rate from 0.5% to 0.75%, in line with market expectations. This move lifted rates to their highest level in 30 years and marked the BOJ’s first rate hike in 11 months, since January 2025. ----------------- Will the bull hold 6800? How much effect would BOJ rate hike lay on US stock? Can Santa rally be assured tonight?
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