The afternoon's film and the reading rules

The November 3 rally is explained by three things: a market where market makers were short gamma, aggressive buyers who absorbed every wall, and a thinly traded zone above 7,600 where price could move fast. This lesson puts the eight captures back in the day's order, maps the levels at 5:13 pm, then draws eight reading rules from them. Those rules are what you should take away, far more than this session's prices, which will not repeat.

The reading rules to keep

1. Start with the regime. Where is price relative to Zero Gamma, and what does the MM model's net GEX say? When the two contradict each other, as that day, let price behavior decide.
2. Read the GEX map as a map of the terrain. A positive strike brakes, a negative strike accelerates. It does not give direction, it says where price is likely to slow down or run.
3. Always cross options with the book. A level is strong when a large GEX and a large resting order fall at the same price (7,600, 7,620).