EB Daily Market Report - Friday, February 21, 2025

Dear Members.

It's Options Expiration Friday and we're seeing continued selling as Market Makers try to wipe out as much call premium as possible. 

The heaviest selling comes at the expense of blue chips with UNH getting hit hard though well off its lows of the day. 

Though the Dow has already moved below its 20 day moving average and is threatening to move below its 50 day, the same cannot be said of the S&P or NASDAQ. So technically, no real damage to two of the three major indexes.

Interestingly, in spite of today's selling, the VIX is pretty flat; no real panic on today's move lower. Of course that could change by day's end but so far nothing out of the ordinary.

The fact is the S&P hasn't really budged since early December of last year. In fact, the S&P closed at 6086 on December 4, almost exactly where it is right now.

Support and resistance are pretty well established; the recent high of 6147 is a level the bulls will need to clear if they hope to take prices higher. To the downside, 6000 has been a tough level for the bears to crack. So until one of those goes expect the market to remain in a narrow trading range.

Tom will be back with his Weekly Report on Monday.

At your service,

John Hopkins