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Craig Shapiro highlights that vol-control funds are currently the leading mechanical buyers in the market as large realized volatility prints drop out of the trailing sample beginning tomorrow.
He adds that positive gamma is pinning the S&P 500 Index within the 7350 to 7600 range, while the buyback blackout is removing corporate demand from the market.
Shapiro recently reported a 10% decline in the KOSPI, which he linked to a 3% drop in Nasdaq futures before the market open. He also highlighted that dealers remained long gamma at cyclical lows during that episode. In a separate market, Shapiro described bear flag formations for Bitcoin across several timeframes.