EB Daily Market Report - Thursday, September 28, 2023

Dear Members.

A brief email today as Tom is not available for the rest of the afternoon.

Promising action today with all of the major indexes higher after some early selling and with the S&P looking to recapture the 4300 level.

It's not a panacea for the bulls; all of the major indexes remain below key technical levels. But the bleeding has to stop at some level if the bulls hope to regain the momentum after the recent bout of selling.

The VIX has settled down a bit after closing in on 20 yesterday and the yield on the 10 year treasury note is off of its high of the day, so at least some benefit to equities.

There's a lot more work to be done for the bulls to get any breathing room, starting with the S&P closing back above that 4300 level. Then, to regain technical advantage, the S&P will need to close back above its 20 day moving average, currently at 4387 and then back above its 50 day, currently at 4457. So you can see a lot of challenges for the bulls. To the downside, the S&P touched 4238 yesterday so that is now important support.

Tom will be back with his Daily Market Report tomorrow.

At your service,

John Hopkins