Daily Commentary: April 21, 2025

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Reaction To Rhetoric and Not Substance

Posted by Pete Stolcers on April 21
www.oneoption.com

The market hates uncertainty and there’s plenty of it right now.

PRE-OPEN MARKET COMMENTS MONDAY – The tariffs, Trump’s comments about Powell and earnings season and upcoming economic releases are making investors nervous. There isn’t any evidence that any of this is going to implode, but the market is declining on fear that it could.

Major news is pending in the next few weeks and when we have that information the market will have greater clarity.

Until then, we can expect lots of volatility. This week we will get a broad sampling of earnings and that will be the primary focus. Next week there will be a ton of economic releases in addition to more earnings. The week after that we will have the FOMC statement.

Swing traders should stay sidelined.

Day traders should stay flexible today. If the first move of the day is wimpy, we could have a nice window of opportunity on the reversal. We are testing the low from Wednesday and this is a small support level.

Support is at SPY $520 and resistance is the low from Thursday.

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