Sideways trading in the S&P 500 around the 1,400 level on Wednesday was likely to continue through options expiry at the end of the week, with heavy open interest in the options market expected to pin the index to that level absent other catalysts. Despite incremental gains, US equity markets have basically been little changed for more than a week as the S&P 500 hovers close to a four-year high. Light trading volumes and a lack of news from Europe have meant few catalysts for traders.
Both August call and put options on the S&P 500 are clustered around the 1,400 level, meaning market-makers could pin the index at the level to maintain a market neutral position and see most of those options expire worthless on Friday. The Dow Jones industrial average gained 2.73 points, or 0.02 percent, to 13,174.87. The Standard & Poor's 500 Index rose 2.06 points, or 0.15 percent, to 1,405.99. The Nasdaq Composite Index added 13.47 points, or 0.45 percent, to 3,030.45.