A market regime is SPX Gamma’s classification of the broader market environment using gamma exposure and volatility conditions. Regimes organize these measurements into a shared framework for interpreting SPX conditions across intraday analysis and Premium Sellers strategies.
SPX Gamma combines positive or negative Market State GEX with elevated or subdued near-term volatility pressure. These combinations form Regime 0, Regime 1, Regime 2, and Regime 3. Market State GEX provides historical context around gamma exposure, while near-term volatility pressure helps describe the volatility environment.
The measurements describe different aspects of market conditions. Market State GEX evaluates the relative strength of gamma exposure, while volatility pressure adds context around changing uncertainty. Reading them together provides a broader assessment than either measurement alone.
No. A regime describes the market environment rather than predicting direction. Directional assessments require additional evidence, including option flow, price behavior, and market structure. A regime provides context for evaluating opportunities rather than a standalone instruction to trade.
Raw GEX measures gamma exposure relative to zero, while Market State GEX places that exposure in historical context. Sessions within the same regime can therefore have different absolute exposure levels. Raw GEX adds detail that helps distinguish those conditions.
Changes in gamma exposure and volatility pressure can indicate developing stability, stress, deterioration, or recovery. Watching the underlying indicators helps traders understand what is driving a transition and whether conditions are strengthening or weakening. A regime change does not guarantee a particular price outcome.
The classifications provide a common analytical foundation. Active Trader applies that context to conditions developing within the current session, while Premium Sellers uses it alongside strategy-specific rules to evaluate opportunities across different expirations and position structures.