EB Daily Market Report - Thursday, June 23, 2022

Dear Members.

A brief update today as Tom Bowley is on the road for the next few days.

We've got a positive picture today with all three of the major indexes higher. A few things worth pointing out.

First, the VIX remains at elevated levels, close to 30, as traders try to figure out if the worst of the selling is over. Next, the tech heavy NASDAQ has put in a higher high for the past four sessions and since the market hit its recent bottom last Friday. Next, the 10 year Treasury Note is down 40 basis points over the past week as it gets closer to 3.0%. Finally, oil has cooled as it inches closer to $100 a barrel. All of this adding up to traders perhaps beginning to think we've hit peak inflation.

It would be a plus if the S&P could clear yesterday's high of 3801. At a minimum, holding gains into the close would have to be seen as a positive.

If stocks continue to move higher we'll want to watch the 3838 level on the S&P then after that the 20 day moving average, currently at 3889. To the downside, the S&P got as low as 3636 earlier in the week and a move below that level could result in additional selling. Bottomline is we're at least seeing more nibbling on the long side which at the moment favors the bulls.

At your service,

John Hopkins

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