Yesterday’s SPX 6630C 0DTE trade I mentioned, the one that I took from 4.9 to 48.5, summed the whole week up so far in a single line - noise. The market initially looked chaotic, yet positioning told a completely different story and was what gave me that trade.
Something has quietly flipped recently.
CTAs that spent months buying dips are now sellers across every region and in the US on all tapes. Hedge-fund nets have slipped again, even as gross exposure stays pinned near highs. Vol control programs are cutting for the first time in months.
The market’s still holding, but the flow that’s kept the market stable all year has finally budged. Let’s unpack what’s really happening beneath the surface, and why this “invisible reset” might matter more than last week’s 3% flush.