S&P 500 Daily Update for Monday February 24, 2025

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Market summary for Friday, February 21st, 2025, and the outlook for Monday, February 24th, 2025:
The market experienced a broad-based decline on Friday, dropping 1.71% on above-average volume, partly due to options expiration. The S&P fell below the 20-period moving average, turning the short-term trend negative, while still holding above the 50-period moving average, keeping the intermediate and long-term trends positive but showing signs of weakness. The index dropped below 6,100, hitting the S3 support level at 6,012, and closed near the intraday low with no significant bounce.
Key factors included a lack of buying from "Smart Money," weakening growth-to-value ratios, and a notable 7.2% drop in UnitedHealth due to a Department of Justice fraud investigation, which dragged the Dow down. Interest rates fell below 4.5% on the 10-year yield, potentially offering support, but economic reports showed declining consumer sentiment (64.7) and a contracting services PMI (49.7), raising inflation concerns amid political changes like executive orders and "Doge."
Technically, the market breached several support levels, with small and mid-caps showing particular weakness, falling near or below their 200-day moving averages. The VIX rose to 18.25, indicating increased fear, though long-term indicators like the 200-day moving average remain intact. Growth stocks were hit harder than value stocks, with staples and utilities outperforming, suggesting a possible defensive shift.
For Monday, the outlook is cautious. The short-term trend is negative, with no major economic reports scheduled, but seasonal patterns and recent weakness (Mondays and Fridays have been soft in 2025) suggest potential for further downside. However, it’s unclear if this is a one-day event tied to options expiration or the start of a broader shift. Key levels to watch include the 50-day moving average (~6,010) and the 6,000 psychological level. If buying doesn’t emerge, the market could test lower support levels, but a bounce is possible if sentiment stabilizes.
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DISCLAIMER This video is for entertainment purposes only. I am not a financial adviser, and you should do your own research and go through your own thought process before investing in a position. Trading is risky!