Despite an initial surge, stocks closed lower today, with the S&P 500 finishing down nearly 60 basis points at 5,022. The index teeters close to the crucial 5,000 benchmark, approaching the looming OPEX on Friday. Breaching this level before Friday could herald a significant market shift.
The S&P 500 reveals a notable accumulation of put delta at 5,200 and 5,100, indicating that market makers, who are short on the index, may face increased selling pressure as the index dips. Dropping below 5,000 would intensify selling activity as the 5,000 puts emerge 
(BLOOMBERG)
Market Dynamics
This month, the ETF is set to cover its calls for expiration on April 19 at the 17,900 strike price, potentially inducing a minor market impact. Notional delta value for these call options currently stands at a modest $457 million, down from previous values as high as billions 
(BLOOMBERG)
Technical Analysis
The NASDAQ has broken below the megaphone pattern, with a recent gap-fill from February 21. Further breach of support at 17,400 could signal a descent to around 17,100 initially 
NVIDIA, which tested and nearly breached support at $850, stands at a critical juncture. A break below this level could spell repercussions across the entire market 
Face the reality: the S&P 500 has gained 5.3% this year, translating to 252 points. NVIDIA alone accounts for 101 points, constituting about 40% of the gains. If NVIDIA experienced a 21% decline, reclaiming $670, it would still boast a 35% increase for the year.
Yet, with NVIDIA currently up by almost 70% this year, a hypothetical drop to $670 and a 50% gain would see its influence in the S&P 500 reduce to 50 points, potentially shifting the overall index gains to 202 points. Considering the interconnected nature of tech stocks, a downturn in NVIDIA could trigger a domino effect, affecting other key players and swiftly unsettling the market 
(BLOOMBERG)
