QQQ is Still in a Negative Gamma Regime. Here’s How a ‘Put Wall’ and Fibonacci Support Could Come Into Play.

The Invesco QQQ Trust, which tracks the tech-heavy Nasdaq-100, remains in a negative gamma regime following a significant technical breakdown in recent trading. The index proxy quickly reached its 38.2% Fibonacci retracement level within a week, paving the way for a potential test of the 50% retracement level at 697.75, situated just beneath the critical 700 strike price. The 700 strike is identified as a major 'put wall' with the largest concentration of put open interest, which additionally aligns with a gap fill level dating back to early August. This convergence suggests strong technical and psychological support may form around the 697.75 to 700 zone if market makers continue to hedge against downward volatility in a negative gamma environment. Adding to the cautious technical backdrop, the Relative Strength Index (RSI) has crossed into bearish territory, and QQQ opened below its 50-day moving average near 713.24. Furthermore, market strategists highlighted the triggering of a Hindenburg Omen signal, reinforcing downside risks across the broader technology sector.