EB Daily Market Report - Friday, February 9, 2024

Dear Members:

The bulls continue to be in charge today with the S&P clearing 5000 and the NASDAQ closing in on 16,000 for the first time since November, 2021.

It helped that revised CPI came out a big less inflationary than expected but this has not translated into lower rates. In fact, the yield on the ten year treasury note is almost 40 basis points higher than it was just over a week ago as expectations the Fed will start to lower rates any time soon have lessened.

Interestingly, the VIX is flat today in spite of the strong showing in both the S&P and NASDAQ. Could this be a sign that the current rally is a bit long in the tooth? Could be, but again, try telling that to the bulls.

Now that the S&P has crossed 5000, we'll want to watch to see if the gains will hold into the close as any late day selling could indicate some more selling might be needed. To the upside we're it totally new territory now with a logical next level of resistance being at 5050. And if the NASDAQ does cross 16,000 the bulls will most likely be aiming to retest the all time high of 16,212 that took place on November 22, 2021.

Tom will be back with his Weekly DMR on Monday.

At your service,

John Hopkins