EB Daily Market Report - Monday, March 6, 2023

Dear Members.

Brief daily updates this week as Tom Bowley enjoys a well deserved vacation!

The market has cooled off this afternoon after a nice start to a new trading day and week and ahead of Fed Chairman Jerome Powell's testimony in front of Lawmakers starting tomorrow. 

On the bright side, both the S&P and NASDAQ remain above all key technical levels in spite of inflation and interest rate worries. Even the Dow attempted to clear all of its key technical levels before seeing some profit taking. We are seeing some relief in government bond yields with the 10 year Treasury Note back below 4%, thus the earlier rally today. But traders will be taking notes when Powell speaks while waiting for any clues that could help them figure out where stocks might be headed.

The S&P did get within 3 points of the next level of resistance of 4081 earlier in the session before cooling off, and a close above that level would be bullish. The key at the moment is for the 20 day moving average on the S&P, currently at 4029, to hold. As long as the bulls can hold the line at that level they will maintain the upper hand. But if that important technical level doesn't hold we could see some additional selling.

I will be back tomorrow with another market update.

At your service,

John Hopkins