zhingle
2025-12-23

🎅 S&P 500 Is Being Pulled Toward 7,000 — Not Pushed

This rally isn’t driven by optimism.

It’s driven by mechanics ⚙️

The record-scale triple witching cleared massive options exposure between 6,700–6,800, removing a key source of dealer pinning. Once that pressure lifted, price moved higher — fast.

Markets don’t break out when everyone gets bullish.

They break out when constraints disappear.

🧠 Options positioning explains the move

Current options dynamics show:

• 🟢 Positive gamma above ~6,835, forcing dealers to buy into strength

• 🔄 6,900 as the main two-way battlefield

• 🎯 7,000 acting as a magnetic level, not a stretch target

In a positive-gamma regime, dips are bought, volatility stays compressed, and price tends to grind higher by default.

This is exactly that setup.

📈 Why 6,900–7,000 matters now

This zone is where:

• 🧱 Prior resistance meets

• 🧮 Heavy options interest sits

• 🧠 Round-number psychology kicks in

A clean acceptance above 6,900 doesn’t just mark a breakout —

it invites systematic buying, CTA flows, and performance-chasing into year-end.

That’s how melt-ups happen.

🔥 My stance (clear and simple)

As long as 6,835 holds, I see 6,900–7,000 as a breakout zone, not a ceiling.

This market doesn’t need good news.

It just needs volatility to stay quiet.

I only turn defensive if:

• 🔴 6,835 fails

• 🧨 VIX rises while price stalls near 6,900

Until then, fading strength has been structurally wrong.

🎄 Bottom line

Santa rallies aren’t about cheer.

They’re about flows, positioning, and fear of missing out.

Right now, those forces point up.

👇

Is 7,000 the next acceptance level —

or the point where this rally finally runs out of fuel?

S&P 500 Rally to Start 2026: January Effect Hits?
First Trading Day of 2026! The Nasdaq rises 1.3%, the S&P 500 up 0.6%; semiconductor stocks surge across the board, with ASML and Micron climbing about 8% to all-time highs, and Nvidia and Broadcom up over 3%. Which stock in your portfolio hit a new high? Do you believe in January effect?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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