EB Daily Market Report - Friday, April 26, 2024

Dear Members.

Today reminds me of the old saying, "what a difference a day makes." And the difference between today and yesterday was two very strong earnings reports from MSFT and GOOGL.

Interestingly, one of the Fed's favorite inflation indicators - the PCE - was slightly higher than expected. Had this happened yesterday, the bears might have used it to their advantage. Instead, traders are ignoring it today which has given the bulls the momentum.

The bulls have some more work to do if they want to continue to hold the momentum and that would start by clearing the 50 day moving average on the S&P, currently at 5124. Right now the S&P is back above the 20 day of 5095, but not by much. So today's close might give us some indication of what to expect in the very near term.

We've now gotten earnings from quite a few very visible companies with a mixed bag. Now we've got to see what AAPL has to say when they report their numbers next week as the reaction to that report could swing the momentum either way.

Wishing everyone a restful weekend and Tom will be back Monday with his Weekly Market Report.

At your service,

John Hopkins