EB Daily Market Report - Monday, October 10, 2022

Dear Members.

Tom Bowley will be in travel mode through tomorrow so here is a brief report as we begin a new trading week. 

The NASDAQ has finally put in a fresh 52 week low of 10,449 which will now serve as near term price support as traders continue to wonder if a bottom is near. So far the S&P has held above its most recent low of 3584.

The VIX almost touched 34 today as fear increased and as bond yields have bounced off of recent lows. Apparently the better than expected jobs report on Friday has traders thinking that the Fed will aggressively continue its rate raising campaign.

This week we'll get a few important reports including PPI and CPI along with Fed minutes from its most recent FOMC meeting. And on Friday we'll get retail sales numbers to gauge the strength of the consumer. You can bet that traders will be paying very close attention to all of the fresh information to see if inflationary pressures are increasing or easing.

For now we've got those clear price support levels of 3584 on the S&P and today's low of 10,449 on the NASDAQ. To the upside, the initial level of resistance on the S&P is likely to be at 3706, Friday's high, and a move back above that level could be seen as near term bullish.

At your service,

John Hopkins