EB Daily Market Report - Wednesday, March 8, 2023

Dear Members.

Day two of Fed Chairman Powell wrapped up with traders realizing rates are likely to go higher and stay around longer. As a result, all of the major indexes are lower with the S&P right in the middle of its 50 and 200 day moving averages,

The yield on the 10 year Treasury Note remains below 4%, even with the certainty of additional rate increases. This might indicate that even though further rate increases could be in store, the rate raising campaign is still closer to the end than the beginning.

The next big event will be Friday's jobs report. As you may recall, the last employment report showed a much greater than expected increase in jobs and since that time the market has continued to move lower. So traders are bracing for Friday's report which could have a big impact on near term trading.

The two key technical levels to keep an eye on now are obvious. First, the 200 day moving average, currently at 3940. That level needs to hold or we could see more selling. Then there is the 50 day, currently at 3997. The bulls will need to clear that level to the upside to have any chance of further advancement.

Bottomline at the moment is the bears have the upper hand. Until that changes, we should trade with caution.

At your service,

John Hopkins