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S&P 500 faces risk of bigger sell-off as options traders warn of negative gamma below key levels.

Market News
23 Jul 2026
CNBC
View Source
Bearish
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The S&P 500 is under pressure with crude oil rallying and bond yields hitting highs, but remains within a 200-point range since May. Options traders highlight that market makers' positions around the 7,500 level have so far supported the index, but if the S&P 500 falls below 7,400, negative gamma could trigger intensified selling. This shift means market makers would sell to cover positions, potentially increasing market volatility and leading to a sharper decline. Investors are closely watching these levels for signs of further market breakdowns.

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