EB Daily Market Report - Friday, March 22, 2024

Dear Members.

Traders have gotten so used to green days that the bulls have no patience for any pullbacks with only the Dow in the red while the S&P is flat and the NASDAQ has turned positive.

AAPL is trying to stop the bleeding after learning the Justice Department has filed an anti-trust suit which has turned out to be more of a distraction with the stock falling back below all key moving averages after it looked like it might have bottomed. The good news? The market no longer appears to be subject to AAPL's woes, thanks to a much more participation by a broader group of stocks.

One thing I've been thinking about lately is a lot of talk about the market being overvalued, particularly stocks in the tech sector. But if you think about it, it's take almost 2.5 years for the NASDAQ to get back to a level not seen since November 2021. On top of that, we've seen companies focus on efficiencies, witness the mass layoffs at some of the largest tech firms. Also, the market now knows that the Fed is done raising rates and in fact is likely to begin lowering rates as inflation continues to taper off.

Bottom line is traders continue to be in a very bullish mood with little indication that will change anytime soon. Might we see some pullbacks? Of course. But so far what we're seeing are willing buyers anytime the market pulls back slightly. Until that changes, the bulls remain squarely in charge.

Tom will be back with his Weekly Report on Monday.

At your service,

John Hopkins