The market’s doing nothing except churning across ES 2067.75. The gray megaphone of the past couple of days has now spun off an interior megaphone (navy blue on chart) across its VWAP.
The navy blue megaphone could spin off another interior megaphone across VWAP of its own.
This is a classic way of just keeping the price moving sideways. Sometimes the megaphones within megaphones will form a block, sometimes a triangle.
The yen spent months in this kind of megaphone-in-megaphone before collapsing.
The SPY put-call ratio last night was 1.17. That’s very low and bearish, but since we’re not in opex week, the effect doesn’t have to be immediate. And the ratio could get more extreme before we see an effect.