EB Daily Market Report - Thursday, November 17, 2022

Dear Members.

This will be a brief update today as Tom Bowley prepares for today's Top 10 Stock Picks webinar that will begin at 5:30 pm EST. You will receive room instructions prior to the start of the event. And the webinar will be recorded for those of you unable to attend the live presentation.

The market has staged a very nice comeback from the early losses as traders shook off some hawkish comments from Federal Reserve member James Bullard. The VIX had jumped back above 25 before settling down to close to 24 where it stands now.

Part of the today's market recovery off the lows could be pegged to the put/call ratio - $CPCE - that rose to 1.46 yesterday, the highest single day level reached since tracking began back in 2003. In other words, a huge number of bets to the downside as we approach tomorrow's monthly options expiration Friday.

With options expiring, there's no telling where the market will close at 4:00 pm EST tomorrow. But for now the S&P remains above both its 20 and 50 day moving averages, so technically positive for the bulls. To the downside there should be support at that 20 day, currently at 3862. To the upside, the bulls are hoping to challenge the 200 day moving average, currently at 4069. So let's keep an eye on those levels in the short term and see what develops as options expiration unfolds.

At your service,

John Hopkins