EB Daily Market Report - Thursday, October 26, 2023

Dear Members.

Things are not looking any better today with all of the major indexes lower and the NASDAQ continuing to lead the way lower.

Even though the VIX is higher, it's well off the session high and only up by just over 2%, possibly a sign that the worst of the selling is nearing. I've also noticed that Treasury yields are off of session highs with the 10 year falling over 2% in spite of a hotter than expected GDP report, maybe one more clue that the selling is getting closer to an end.

In yesterday's report I pointed to support on the S&P just above 4150. It cruised through that level early on but now has move well off the low of the day and back above that 4150 level. So, we can watch to see if the bears maintain control into the close or if the bulls build on the move off of the session low. 

That low on the S&P today was 4127, so that is now the new level of support. To the upside, the bulls have some work to do to regain some technical advantage with the 200 day moving average currently at 4239. That may be asking too much for today but we're at least nearing a much more historically bullish period, especially once we get through tomorrow.

At your service,

John Hopkins