BY MARK SEBASTIAN
April 17, 2025
Hey Traders,
Markets had a rough day on Wednesday.
There are a couple of reasons this happened:
- The NVDA news was NOT good for tech names.
- Powell basically said there is no Fed put (a lie but cute)
- Expiation of index options on Thursday morning likely pushed the limits once the S&P 500 started selling off.
However, key levels did hold:
The S&P 500 closed above 5250: a key level to watch.
VIX was not overly strong on Wednesday, which was surprising.
Despite the selling, VIX really did not get much of a pop closing at 32.64; about 2% a day is pricing in right now.
When we get this kind of selling and VIX doesn’t fly, that means traders are getting tired of selling. Food for thought …
Finally – and this is a mixed signal – the DIA and IWM were relatively strong on Wednesday, which is somewhat of a decent sign. Although, I would be much happier if this happened on an up day.
Basically, things don’t LOOK like the market is going to fall apart.
And today might be strong; however, based on the NVDA news overnight, a shoe can always drop.
Make sure to join me and my team live at 10 a.m. ET – I am guiding you through this mess every day.
Let’s Recap Yesterday’s Trade
No Trade. We looked at a bull play, then Powell began talking … kinda put an end to that.
…Today’s Outlook
We are bullish and looking for a potential open lower than a rip. Be on the look out for a bounce off 5250 on Thursday.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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