$SPY Bulls Defend $765, But $768 Gamma Wall Caps the Rally

$SPDR S&P 500 ETF Trust(SPY)$ is holding above key support at $765, with the $762 double bottom still intact. The main level to watch now is the 766.69 Gamma Flip, which could determine whether today remains range-bound or shifts into a trend-driven session.

There is roughly $1.64B in net positive stacked above $SPY. In a positive-gamma environment, dealers are net long gamma and typically hedge by selling into rallies and buying dips, which absorbs volatility and keeps price action contained. As long as $SPY remains above 766.69, the setup favors range trading, mean reversion, and fading short-term extremes rather than chasing breakouts.

Below the Gamma Flip, however, the trading regime changes. Dealer hedging can begin to reinforce the direction of the move, allowing selling pressure to accelerate and turning a range-bound session into a momentum-driven one.

That makes 766.69 the key line in the sand today.

Above it, the first major level is the $768 Call Wall, where the largest concentration of call gamma sits. The premarket high of $768.15 is also right in the same area, making $768 the most important near-term resistance zone. If $SPY pushes into $768 and shows signs of rejection, a fade back lower could offer the cleaner setup.

On the downside, watch $765.22 and $762. If $SPY reclaims and holds 766.69, the range setup remains intact, with 767 and 768 as the upside levels to fade. If it loses 765.22, downside momentum could build toward 764 and then 762. The $762 Put Wall also marks the lower end of the expected $762.43–$771.69 range.

The Game Plan

• Hold above 766.69: Favor range trading and fading extremes toward 767–768.

• Lose 765.22: Momentum downside becomes more likely, targeting 764 → 762.

• Stay between 765.22 and 766.69: Reduce size and wait for the Gamma Flip to resolve.

The key takeaway: positive GEX is not inherently bullish. It is a volatility regime. Above the Gamma Flip, dealer hedging tends to suppress moves and pull price back toward the range. Below it, hedging can amplify the move and allow the trend to extend.