EB Daily Market Report - Friday, June 27, 2025
Dear Members.
Well, the bulls finally pushed both the S&P and the NASDAQ to record highs, even in spite of mostly negative economic news released this morning. This tells us that the market has its head down; all news is apparently good news, at least for now.
The move higher today comes with a caveat that may or may not matter; both the S&P and NASDAQ are technically stretched. They can remain stretched for a short period or for a long time, but at some point it's going to get harder to drive stock prices a lot higher without some type of pullback.
The VIX is back to lower levels as well, dipping into the 15's before bouncing a tad. Interestingly, the VIX is flat - not even lower in spite of the sharp rise in stocks today. Maybe one other minor sign that things might be getting a bit overdone.
Now that the S&P has made a record high, what might be next? Often when the market reaches new levels it likes nice round numbers, so 6200 might be the next target for the bulls. That's less than 20 points from here so it won't take much to get there.
Of course there's no guarantee that the market will continue to march higher without some relief. The first level of price support is now the previous high on the S&P of 6147. Let's see what happens into the close and Tom will be back with his Weekly Market Report on Monday.
At your service,
John Hopkins