Daily Retrospective: Inflation Data Steadies the Ship

PART 1: THE CLOSING VERDICT (10:00 PM ET)

PART 2: QUANTITATIVE SIGNALS

• Volume Profile: Value remained overlapping with yesterday's lower distribution. The market found acceptance near the 6,835 pivot but failed to reclaim the 6,880 value high from earlier in the week. The "inside day" structure suggests energy is building for the next directional move.
• VOLD Analysis: Selling pressure persisted despite the green close. Cumulative VOLD finished negative, indicating that the +0.05% gain was driven by specific large-cap support rather than broad participation.
• Gamma Levels: The market respected the 6,795 put wall (tested at the open) and was capped precisely at the 6,880 resistance (call wall). Dealers remain in negative gamma territory, exacerbating intraday swings.

PART 3: TOMORROW'S WATCHLIST

• Key Levels: Overnight support at 6,800. Key resistance at 6,880.
• Economic Events: Markets are closed Monday (Presidents Day). Tuesday features US Retail Sales (8:30 AM ET) and RBA Minutes.
• Scenario: If 6,800 holds, then Bull Case targets a retest of 6,880. If 6,800 breaks, then Bear Case opens the door to the 6,750 liquidity void.

PART 4: 1DTE SPX OPTION RECOMMENDATIONS

• Strategy: Neutral/Range-Bound (Iron Condor) expiring Tuesday, Feb 17.
• Rationale: With the holiday weekend and VIX compressing back below 20, we expect theta decay to dominate. The 6,800-6,880 range is well-defined.
• Trade Idea:
  • Sell: 6890 Call / 6770 Put
  • Buy: 6905 Call / 6755 Put (Wings for protection)
  • Risk Management: Stop loss if SPX breaches 6,790 or 6,895 spot. Target 50% profit taking on Tuesday open.

DISCLAIMER

TradeScope AI provides quantitative analysis for informational purposes only. Trading options and futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results.