EB Daily Market Report - Friday, April 5, 2024

Dear Members.

Traders got a big surprise this morning with the jobs report blowing away expectations. Instead of seeing this as a reason for the Fed to hold off lowering rates, traders saw it as a sign of a strong economy, and accordingly, all of the major indexes are up nicely.

The buying is a welcome sight to the bulls who have watched the Dow have its worst multi-day performance in quite a while. But today it's trying to recapture its 50 day moving average, a level it had not been below since early November of last year.

The VIX has cooled as well after the sharp move higher yesterday. But it still remains elevated relative to how it has behaved most of the year so we'll want to keep an eye on it, especially if we see selling later in the day.

At this moment, both the NASDAQ and S&P are back above all key technical levels so if we see a strong close that would be bullish. At the moment it's best to remain a bit cautious until we see how the day plays out and Tom will revisit when sends out his Weekly DMR on Monday.

At your service,

John Hopkins