EB Daily Market Report
Dear Members.
First, we heard from a few members that they did not receive yesterday's Daily Market Report via email. We apologize for any inconvenience and want to remind everyone that the DMR is posted on the site immediately after it is sent to members.
The market is struggling to find its footing after a strong start this morning as we get ready to close out another trading week and month.
Interestingly, we've got two Mag 7 stocks heading in opposite directions, with AAPL down over 9% and AMZN up 15% on the heels of their respective earnings reports. Though many stocks are set to report their numbers over the next few weeks we've heard from most of the tech giants and seen a very mixed picture which might help explain why the market is having a tough time advancing.
Though the $VIX is well off session highs, it's still well above recent lows as traders remain skeptical about the near term outlook. One thing worth mentioning is the spike in interest rates with the 10 year Treasury note at a level not seen since January of last year; not exactly a development that favors the bulls.
You may recall that in my DMR last Friday I pointed out the 20 day moving average was closing in on the 50 day and a move below could be problematic. Since then the market has struggled including the sharp decline on Wednesday when the Fed made its interest rate announcement.
Right now the S&P remains just below both the 20 and 50 day so we'll want to keep an eye on where it finishes. A close above the 50 day, currently at 7470 would be seen as positive while a close below the 20 day, currently at 7450 would favor the bears.
Tom will be back with his Weekly Market Report on Monday.
At your service,
John Hopkins