FREDAlert!
Volume 17, Issue 1
April 4, 2025
We are getting enough similar questions that we have decided to put out a FREDAlert. The current decline was not suggested by our technical indicators and is a surprise. When this happens, the market will do what it will, which means most support levels are less sticky. That said – we think the 500 to 485 area on SPY should hold. On QQQ those numbers are 420 to 400. There are a couple of tactical things to look at. First, generally if the morning lows are going to hold the low, that should be struck by 10:30 to 11 a.m. EDT in the morning. New lows after that would mean down into the close. Tactically for traders you can sell some puts on names you want, there are some decent premiums.
With regard to the Put/Call numbers we got to 1.15 yesterday. Finally, a good number, and today should be another good number. We will see our chart of the indicator and publish it in the Monthly next week, but note that, again, this is a news driven market and you should not hang your hat on one indicator. Obviously, the market is oversold, and we want to see the weekly numbers before we make a concrete trading plan.
