$ES_F projected to touch near 5284 by tomorrow close.
This is likely a dead cat bounce. pic.twitter.com/xKI5Hpvozg— optionGeek (@StockShark16) April 8, 2025
Both $TLT and $GLD sold off today — and that’s a warning sign. ⚠️
Cross-asset correlations are breaking, which often signals instability beneath the surface.
Even though $VIX has likely peaked, the next phase could be more painful — not with a crash, but a slow grind lower,…— optionGeek (@StockShark16) April 8, 2025
I couldn’t agree more https://t.co/tS9qbOG1Fd pic.twitter.com/RkHfpVKfIH
— JustDario 🏊♂️ (@DarioCpx) April 8, 2025
Wild Stock Swings Magnified by Headline Bots, Strained Liquidity
The stock market is particularly vulnerable to wild swings right now due to a combination of thin liquidity and headline-driven algorithmic trading bots.
That’s what helped turn a false tweet about President Donald Trump’s plans for tariffs into a $2.7 trillion market rebound on Monday, and is fueling another jump in US stocks today.
As traders grapple to keep up, market makers dial back, making trading more expensive — and making equity markets extremely volatile. Those conditions remain in place, with the S&P 500 surging more than 3% when the latest session began.
“Liquidity is terrible, so anyone with just a decent-sized order is going to move the market,” Brent Kochuba, founder of the options data provider Spot Gamma wrote in a research note to clients on Monday.