EB Daily Market Report - Friday,, April 19, 2024

Dear Members.

Last night's increased tensions in the Middle East saw futures plummeting. Then this morning it looked like the weakness might quickly subside. Now we're seeing a mixed market with the Dow in positive territory while the S&P is lower and the NASDAQ is down sharply.

The move lower in the NASDAQ comes on the heels of NFLX's earnings last night and with a slate of other key tech earnings coming out over the next two weeks. And with rates increasing steadily the past few weeks there seems to be renewed concern on how this might impact the collective bottom line.

Maybe a little silver lining is that both the NASDAQ and S&P are both oversold. In fact, you hve to go back to October of last year's bottom to see RSI's as low as they are at the moment.

Lately, Tom has warned of the prospect of a VIX closing above 20 that could lead to additional selling. The VIX climbed over that level early in the day before settling down some and is currently just above 19. So we'll want to keep an eye on this into the close.

Right now it looks like the next level of support on the S&P is at 4946 and then 4920. For sure we want to proceed with caution here, keep an eye on what transpires into the close then revisit on Monday when Tom sends out his weekly report.

At your service,

John Hopkins