Daily Commentary: April 24, 2025

Auto Post1Option Commentary

Watch For a Dull Start Today

Posted by Pete Stolcers on April 24
www.oneoption.com

The market is going to open flat and there is major news pending.

PRE-OPEN MARKET COMMENTS THURSDAY – The tariff news is starting to settle down. Trump has softened the tone and trade deals are pending. Google will post results after the close today and the reaction to Tesla was bullish.

Next week we will get the first look at Q1 GDP. The Fed is expecting a 2.5% decline and that would be the first sign of weakness. Initial jobless claims were 222K this morning and the Jobs Report next week should be stable at 150K.

Earnings season will kick into high gear next week. The results should be better than feared. The market has pulled back in Q1 and the tariffs have not had an impact yet. Forward guidance will be guarded.

Day traders should expect a dull start to the session. Buyers and sellers will pair off and the first directional move is likely to be wimpy. If I see this price action I will prepare for a reversal. That could take a couple of hours to set up.

Swing traders should wait for this bounce to stall at SPY $550. There are potential bullish catalysts (trade deals and a budget) so we do not want to enter short positions until that news cycle has passed. We also need to see signs of resistance.

Keep your trading light and be very selective with your entry points.

Support is at AVWAPQ and resistance is the high from Wednesday.

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