We are in a short squeeze right now. Just saw what was likely around 6,000 contracts of short iceberg hedging flow from market makers in ES during premarket. Based on the options data, SPX could potentially reach 7,675 today, corresponding to ES 7,745. Based on yesterday’s 0DTE data, SPX 7,650 is also a key level, corresponding to ES 7,720. If ES holds above 7,720 at the open, it is highly likely that we will see 7,745 today.

Right after I posted yesterday, I saw a huge amount of 0DTE SPX puts. This was the main reason the market sold off after Warsh’s remarks. But this did not stop the broader trend. The stock market still moved higher today as predicted. I can only say that yesterday’s low is in.