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    Late-day bids appear throughout the week, but the S&P 500 is still down by 26 points.

    by VT Markets
    /
    Sep 5, 2025
    Late in the week, we’ve noticed strong bidding activity in the stock market as it approaches closing time. Even with some small bids appearing recently, the S&P 500 is still down by 26 points, or 0.4%. This trend of strong bids at market close has been consistent. Many are watching closely to see if it will continue.

    Market Dynamics

    We’ve noticed a clear trend: sellers dominate in the morning, but buyers consistently show up to support the market later in the day. The S&P 500 is currently around 5520, indicating that there are investors ready to buy on any weakness. This commitment persists despite the August Consumer Price Index (CPI) report from a few weeks ago, which showed inflation slightly rising to 3.4%. As a result, some traders are feeling anxious. For those trading derivatives, this price movement suggests that selling puts or put credit spreads during intraday dips might be a smart strategy in the upcoming weeks. The market has proven support in the final part of the trading day, making it risky to hold short positions as the day ends. With the VIX remaining low around 17, there’s a chance to earn premiums based on the belief that this support will continue. However, we should keep in mind that September is historically a tough month for stocks. Market data from past decades shows that the “September Effect” usually leads to increased volatility and downward pressure. While the strength seen at the end of the day is encouraging, it will be challenged by seasonal trends.

    Impacts of Economic Reports

    The strong jobs report from August, released last Friday, revealed that the economy added 210,000 jobs, boosting buyer confidence. This solid economic performance helps investors overlook short-term inflation worries and uncertainty around the Federal Reserve. Therefore, using options to limit risk, such as buying call spreads, can allow participation in these late-day rallies while providing protection against sudden changes in sentiment. Create your live VT Markets account and start trading now.

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