EB Daily Market Report - Friday, April 12, 2024

Dear Members:

Just when it looked like the bulls would continue to tack on points after yesterday's nice gains, we're seeing the complete opposite today with all of the major indexes sharply lower.

Fear was at its highest level earlier in the session with the VIX hitting a level not seen since October of last year. In fact, it climbed over 19 at its peak today after settling down some but still remains elevated with roughly 90 minutes left in the trading day.

Earnings season kicked off this morning with some major banks posting numbers and with JPM down over 5%. And next week we'll see the number of companies reporting pick up as earnings season gets ready to kick into high gear.

The selling today is broad with the tech heavy NASDAQ showing the most weakness as it tries to hold its 50 day moving average. And the S&P touched its 50 day, currently at 5111, earlier in the session before bouncing some but is in danger of going below that important technical level for the first time since early November.

Today's close could give us some further clues as to what to expect in the near term.  A close below that 5111 level on the S&P should be considered bearish. On the other hand, any recovery into the close could leave the bulls with the upper hand.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins