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Weekly
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The SPX closed last week modestly lower with a lower high as Friday's gap higher stalled again just under upper value resistance at 7765 and a long flag continues to build inside the larger rising channel pattern. A close above that level is key and targets the 7800 round number and the August high at 7815 but also can start a strong leg higher in markets towards 8000. The caveat is that under the surface overall market breadth is weakening (NYSI) even as NYSE new lows fell from a week ago. Last week lost support near 7660 and found a low near 7615, and below that level can move to the lower channel support near 7585 while a larger PoC sits at 7500. The SPX closed the week above its 8-MA and 21-MA with the 55MA near 7640.

Open
Interest
Alerts
Goldman Sachs (GS) shares of the investment banking giant are stabilizing after retesting the 200 EMA and large support near one year point of control on the volume profile at 775 and seeing a MACD bullish cross triggering into the new week. GS has room to rebound if markets choose to bounce back and a move back to 850-875 would fill in space on the volume profile. GS saw recent dip buyers of 300 January $925 calls at $85.25 and 300 Dec 2028 $900 calls bought on 3/12 while June 2027 $1300 calls now have over 1100x in open interest from buyers on 2/27.
Trade to Consider: Long GS May $850/$875 Call Spreads at $10 debit

Chart
Set-Ups
Alkermes (ALKS) on 6/22 with a large buy of 2500 November $55 OTM calls for $750K and has also seen 1500 August $55/$45 bull risk reversals open and 3500 August $45 calls bought on 6/15 remain in open interest.

Market
Talk
Stocks opened quietly into a small gap up after the CPI report rose by +0.9% but markets shrugged it off due to it likely being a temporary oil price based jump. Stocks sold off into midday to test near 6800 but stabilized overall even with VIX turning green. Software stocks continued to get pummeled which is still a looming concern while Oil stays sticky near $100. It is worth noting that the S&P 500 moved into negative territory following a New York Post interview with President Trump in which he said the U.S. military is preparing to resume strikes on Iran if peace talks fail this weekend. Overall, the market is holding up as solid semiconductor strength helps offset weakness in cyclicals and defensives.
What’s On Tap: PPI Highlights a Quieter Econ Data Week, UK GDP, Aussie Employment Change; Earnings From GS, BLK, C, WFC, JPM, BAC, MS, JNJ, NFLX, AA, TSM as reporting season begins already with banks to start
Flow
Recap/
Highlights
The past week saw early week action saw quieter volumes as traders waited for Iran clarity which then brought on a busy midweek with the ceasefire news. In that surge higher by Wednesday we saw opening call selling and overwriting into this rally which is normal and makes sense after a big move, funds would rather sell calls to cap upside rather than sell their stock. We saw a lot of industrial names the past few days rolling calls to May from April as a continued theme for months. We saw stubborn software put sellers rolling out in time in names like NOW, DDOG, SNOW.
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