Daily Retrospective: Bulls Reclaim Control on Tariff Relief

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

PART 2: QUANTITATIVE SIGNALS

• Volume Profile: Value migrated significantly higher today. The close at 6909.51 was at the very top of the daily range (High: 6915.86), indicating strong conviction from buyers into the bell. We have successfully reclaimed the 6860 value area.
• VOLD Analysis: Buying pressure accelerated in the final hour, diverging positively from price action earlier in the session. The "tariff relief" narrative following the Supreme Court ruling drove institutional inflows, overpowering early session hedging.
• Gamma Levels: The market decisively broke through the 6900 Call Wall, which now flips to immediate support. The next major resistance level is identified at 6950, with little gamma impedance between here and there.

PART 3: TOMORROW'S WATCHLIST (FOR MONDAY FEB 23)

• Key Levels:
  • Resistance: 6925, 6950 (Psychological/Gamma).
  • Support: 6900 (Flip Level), 6860 (Breakout Point).
• Economic Events:
  • Monday is a relatively quiet session for US economic data.
  • Global: NZD Retail Sales (Overnight).
  • Focus: Markets will be positioning ahead of Nvidia (NVDA) earnings later in the week and monitoring geopolitical headlines regarding Iran.
• Scenario:
  • Bull Case: If 6900 holds as support in the overnight session, expect a drift higher towards 6925. A break of 6925 targets 6950.
  • Bear Case: If 6900 fails, we likely retest the breakout zone at 6860. A failure there opens the door back to 6835.

PART 4: 1DTE SPX OPTION RECOMMENDATIONS (FOR MONDAY)

• Trade Idea: Bull Put Spread (Credit Spread)
  • Strikes: Sell 6875 Put / Buy 6855 Put (Exp: Feb 23).
  • Rationale: With the close at the highs and the 6900 level cleared, momentum favors upside or consolidation. We want to sell premium below the 6880 support zone, utilizing the weekend theta decay and the drop in VIX.
  • Risk Management: Stop loss if SPX breaks below 6870. Target 50% profit taking on the premium received by mid-day Monday.

Disclaimer: This report is for informational purposes only and does not constitute financial advice. Trading options involves significant risk and is not suitable for all investors. Past performance is not indicative of future results.