This chart shows the S&P 500 (green line) vs. dealer gamma exposure (yellow/purple line).
“The read is simple: positive dealer gamma means that dealer flow attenuates market flow (i.e. the brakes are on); negative dealer gamma means that dealer flow amplifies market flow (i.e. pedal to the metal).”
The level on the 4th of March is 30% more than this time last year – which ever direction the market moves it will be get an extra boost.
