EB Daily Market Report - Thursday, October 6, 2022

Dear Members.

Just a reminder that Tom Bowley will be in travel mode as he participates in ChartCon 2022, until early next week. Here's a brief market update.

Weekly jobless claims came out this morning and were higher than expected. That seemed to calm the market some ahead of tomorrow's important monthly non-farm payroll report that could have a big impact on near term trading.

All three of the major indexes have already seen wild swings with the 10 year Treasury note rising slightly and the VIX hanging out in the 30 range. 

The action we are seeing ahead of tomorrow's jobs report and as earnings season kicks off starting next week shows all three major indexes struggling to move above their respective 20 day moving averages. In tact, this has been the case for the past three sessions. The bulls will argue that they're pleased that the market has held the bulk of the gains off the recent bottom. The bears will argue that there's not enough momentum to clear those important 20 day moving averages. It's quite possible that the debate will be settled one way or another once tomorrow's jobs numbers are released.

In the meantime, keep an eye on yesterday's high near 3807 on the S&P as a close above that level could lead to further gains. To the downside watch to see if yesterday's low of 3722 holds as a move below that level could result in further selling.

At your service,

John Hopkins

EarningsBeats