US stocks are sliding toward their lowest points of the day after Iran’s missile strike. The Dow Jones Industrial Average has dropped by about 850 points, or 1.98%, and is now at 42,114.88. The S&P 500 has fallen by 78 points, or 1.25%, bringing it to 5,969.73. The NASDAQ Composite is down 283.1 points, or 1.44%, now at 19,379.62. Currently, both the NASDAQ and S&P indices are nearing their 100-hour moving averages. For the S&P, this average is at 5,962.84, and it has seen a low of 5,964.26, staying slightly above that mark. The NASDAQ’s 100-hour moving average is at 19,384.13, but it has reached a low of 19,369.32, dropping below the moving average. The latest news indicates a sharp downturn in US stocks, driven by the missile strike from Iran. Traders are pulling back, and major indexes—the Dow, S&P, and NASDAQ—are all experiencing significant losses. The Dow has fallen nearly two percent, while both the NASDAQ and S&P are also down over one percent. Right now, the focus is on the technical levels being tested, especially where the prices stand in relation to their 100-hour moving averages. These averages serve as key reference points for short-term trends. The S&P is just above this average, while the NASDAQ has dipped below it. When prices approach their moving averages, the focus shifts from direction to behavior. It shows whether traders will respect the average or let prices break through. For those trading short-term derivatives, these moments can be critical. If the S&P closes below its average for more than a couple of sessions, it could signal a loss of confidence in further gains. Conversely, moving back above the average can indicate that the sell-off is being absorbed, suggesting ongoing buying interest. Given that the NASDAQ has already fallen below its moving average, we expect some increased activity, especially in short-term options. This situation often acts as a trigger—either catching aggressive sellers off guard and reversing the trend or continuing the downtrend. It’s essential to pay attention to reactions around these averages. While timing doesn’t have to be perfect, it’s crucial to consider liquidity to avoid slippage during trading, especially in high-volatility situations. In the coming days, implied volatility in equity-linked instruments is likely to rise, especially if political news remains uncertain. We’ve seen that at-the-money (ATM) options are widening beyond historical norms, indicating that traders are pricing in uncertainty. If this trend continues, holding these positions may become more expensive, and gamma-sensitive flows could lead to quicker price fluctuations, potentially destabilizing even well-valued positions. It’s wise to monitor renewed demand at previous support levels instead of just reacting to news headlines. These averages, while not foolproof, reveal where traders are interested. Relying solely on overshoots or breakdowns without confirmation can be risky, especially in a week where external factors have more influence than usual. Keep your position sizes appropriate for the risks associated with these events. Trying to ride out macro-driven moves without hedges can lead to regret. We’ve made sure our exposure remains adaptable, adjusting all delta risk back to neutral by the end of the day. It’s not about making bold predictions; it’s about protecting what you have.

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