EB Daily Market Report - Friday, June 23, 2023

Dear Members.

A brief update today as Tom is out of the office.

The market continues to correct after the strong move off the most recent bottom of May 13 with all of the major indexes lower.

The good news for the bulls is both the S&P and NASDAQ remain above their respective moving averages with the Dow still holding above its 50 day. So technically, the bulls remain in charge.

This is one of those times of the month and year when traders are looking for good reasons to be long or short. For example, this week we heard Fed Chairman Jerome Powell indicate further rate hikes are likely coming. Accordingly, traders started getting more defensive. And we're still 3-4 weeks before the next earnings season kicks in with no major economic reports due out anytime soon. Thus a bit more caution at the moment.

The VIX is remaining low, dipping back into the 12's in spite of today's selling which can also be seen as bullish.

The first key level of the support, should the selling continue, will be the 20 day on the S&P, currently at 4312. To the upside we saw the S&P reach 4448 so that is the level the bulls will need to clear in order to take the market higher.

I hope everyone has a restful weekend!

At your service,

John Hopkins