EB Daily Market Report - Friday, February 27, 2026
Dear Members.
The selling we saw yesterday continues into today with all of the major indexes in negative territory though off session lows as we get ready to close out another trading week and month.
NVDA continues to drag tech stocks lower and the financial sector is being dragged lower by American Express and Goldman Sachs.
The combination of a weak NASDAQ along with a weak financial sector is a lot for the market to handle, especially with PPI hotter than expected and with the inflation hawks dismissing the idea of further rate cuts anytime soon. Interestingly, government bond yields are actually lower with the 10 year bond back below 4% for the first time since November of last year.
But even with the largest market cap in the world under fire and signs that inflation persists the S&P remains in a tight trading range with the bulls unable to crack that all time high of 7002 and the bears unable to take the S&P much below 6800. This, in turn, has frustrated most traders, both long and short, who are likely finding it difficult to make meaningful gains on either side of the equation.
We are getting ready to exit the month of February which has been more punishing on tech stocks than the broader market. But all of the major indexes are back below their respective 20 and 50 day moving averages, technically favoring the bears.
We should continue to keep our eyes on 6775 as price support on the S&P. If that were to go the next key price support is 6720, the December 17 low.
Tom will be back with his Weekly Market Report on Monday.
At your service,
John Hopkins