EB Daily Market Report - January 19, 2024

Dear Members.

A quick update today.

The bulls are working overtime on their quest to revisit the all time high on the S&P of 4818.62. This relentless pursuit comes in spite of negative divergences all around and Max Pain that decidedly favors the bears.

It's not hurting that AAPL is back on track as it moves back above both its 20 and 50 day moving averages. Plus, semiconductor stocks are on fire with stocks like NVDA and AMD hitting new all time highs.

It should be pointed out that in spite of their mission to take out that all time high on the S&P, it hasn't happened yet. In fact, one could argue that a failure to clear that 4818 level could mean the recent run is over. If this turns out to be the case, it might not be a bad idea to trim some here - there's never anything wrong with locking in nice profits - and re-evaluating should a new all time high take place.

Next week earnings reports will start coming out in droves. So we'll start to see if the strong start to the year is warranted. In the meantime, let's watch and see what develops into the close and revisit the state of the market on Monday.

At your service,

John Hopkins