With less than 24 hours to go until one of the most closely watch Fed announcements in a long time, the VIX finds itself hanging just below 20, the gamma gravity in the S&P is at 4,000 while dealers remains short Nasdaq/QQQ gamma (which however is shrinking by the day). In short, depending on what Powell says (we previewed how market would respond to a hawkish… and dovish Fed), markets could tumble or surge.

A quick rundown of the key technical factors ahead of tomorrow’s 2pm announcement:

As our friends at SpotGamma note, the 400/4000 Call Wall in SPY/SPX has grown in size to over $5BN from yesterday – 10k 4000 strike calls were added yesterday, along with 100k SPY calls (to 400) – which increases its “pull” and yet total gamma is little changed in the S&P500 (that said, due to the FOMC tomorrow SG does not expect much movement today a forecast which has so far proven accurate).

On the other hand, Nasdaq/QQQ gamma remains negative, but that continues to shrink and SG notes that the upcoming March op-ex should flush out the remainder of that negative gamma position.

MORE