May 4, 2026

By Nigam Arora

To gain an edge, this is what you need to know today.

Tempered Rally

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

• The chart shows the rally attempted in the early trade today was tempered.
• The chart shows the volume continues to be low.  In The Arora Report analysis, one reason for the low volume is that investors do not have conviction in this rally.  Instead of buying stocks, they are aggressively buying call options.  As investors aggressively buy call options, dealers who are selling the calls buy stocks to hedge.