10:30 AM SPX Update: Intel Drag Meets Tariff Relief

MORNING RECAP

Market action is mixed to bearish this morning as Intel (INTC) plunges ~13% following a disappointing earnings outlook, acting as a significant drag on the tech sector and broader indices. However, the downside is being cushioned by yesterday's relief rally after President Trump rescinded tariff threats on European allies, removing a major geopolitical overhang.

Treasury yields have ticked lower (10-year ~4.24%), which is providing some valuation support. The VIX is holding steady near the 16 level, suggesting that while risk appetite is checked, panic is not setting in. The SPX opened softer but is attempting to find a floor, trading in a choppy range as the market digests these conflicting signals.

UPDATED LEVELS

We are seeing a battle at the 6900 pivot zone.

• Gamma Support: 0DTE flows suggest immediate support is building around 6875-6880. A break below here opens the door to the 6850 Put Wall.
• Gamma Resistance: Upside is capped for now at 6925, with heavier Call Gamma likely sitting at 6950.
• GEX Shift: Net gamma remains mixed; we are not in a "positive gamma" regime that dampens volatility entirely, nor a "negative gamma" accelerator. Expect two-way chop.

TRADE UPDATE

Strategy Adjustment: Given the conflicting catalysts (Intel bearishness vs. Tariff bullishness), the morning trade idea shifts to a Range Bound / Mean Reversion approach.

• Bull Case: If SPX holds 6880 and VIX remains below 17, look for long entries targeting a rotation back to 6900-6910.
• Bear Case: If we lose 6880 with volume, the next target is 6850.
• Action: We prefer fading the extremes of the 6880-6920 range for now rather than chasing a breakout in either direction until a clear trend emerges post-11 AM ET.