EB Daily Market Report - Friday, January 31, 2025
Dear Members.
First. there will be a members only webinar next Monday, February 3, the January Effect" that could prove timely with the month coming to an end. You will receive room instructions prior to the start of the event.
The market was humming along nicely until word got out that the US will be imposing Canada, China and Mexico beginning Saturday. This is when we saw earlier gains start to evaporate as we get ready to close out another trading week.
Once again we saw Small Cap stocks stall with the IWM having difficulty clearing its 50 day moving average after multiple attempts the past 10 days. Accordingly, unless we see a close back above that level, currently at 229.02, it will be challenging for small caps to move higher
On the plus side, the Dow, S&P and NASDAQ remain above all key technical levels, favoring the bulls. And government bond yields have steadied, with the 10 year Treasury Note well below its January 13 high. The VIX has also cooled some, well off its high of 22.51 this past Monday.
Traders are favoring tech stocks today but the NASDAQ remains below its December 16 high of 20,204. That level could be challenging to clear in the near term with most of the important large cap stocks having already reported their earnings.
Tom Bowley will be back with his Weekly Market Report on Monday.
At your service,
John Hopkins