Pre-Market Divergence Nailed It – The Market Got Wild | SPX Market Analysis 21 Feb 2025

Ahoy there Trader! ‍‍⚓️

It’s Phil…

Well, that was fun!

The pre-market divergence gave us the heads-up, and by the time the main session kicked in, things went wild. SPX, DJX, NDX, and RUT all took a dive, and my bearish trades lined up perfectly.

Even my fat-finger trade—which should have been a total disaster—somehow worked out in my favour. After weeks of painfully slow price action, we finally got some real movement, and I couldn’t be happier.

I love it when a plan comes together. (lights a Cuban cigar.)

Deeper Dive Analysis:

Market Finally Moves – And It Was Glorious

For weeks, the markets have been about as exciting as watching grass grow. But today? We finally got some fireworks.

📉 Major Index Performance:

  • SPX: -1.71% (about time!)
  • DJX: -1.7% (took a tumble)
  • NDX: -2.06% (tech got wrecked)
  • RUT: -2.94% (small caps hit the hardest)

 

The Trades That Paid Off

Bull hedge? Printed profit 💰
Bear swing? Chugging along nicely 🚆
Bear rolls from February? All in the green 🟢
Fat-finger trade? Somehow a winner 🤷‍♂️

This is why I stick to my system—even when the market is slower than dial-up internet in 1997. You never know when the next big move will hit, but when it does, you’d better be positioned for it.

Why This Move Was Inevitable

🧐 The Pre-Market Clue: The divergence we spotted in the early futures session told us something was brewing.
📉 Overstretched Markets: SPX had been holding up while everything else was falling apart—that was never going to last.
🔥 Pent-Up Volatility: The market had been stagnant for weeks—and when pressure builds, it has to release somewhere.

And just like that, the market did exactly what it does best—wrecking complacency.

Final Thoughts – What’s Next?

📌 Bearish setups are working—stick to the plan
📌 Expect some bounce attempts, but the trend is set
📌 Keep managing positions—don’t get complacent

This is what we’ve been waiting for. And it feels damn good when a well-structured trade plan delivers.

Time to kick back and enjoy the weekend like a victorious A-Team mission.


Fun Fact

📢 Did you know? The largest single-day percentage gain in the Dow Jones happened the day after its biggest crash—rallying +11.08% on October 30, 1929.

💡 The Lesson? Markets love extreme swings. One day it’s doom and gloom, the next it’s euphoria. That’s why a solid system beats emotional trading—every time.


Happy Trading,

Phil

 

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