EB Daily Market Report - Friday, May 17, 2024

Dear Members.

First, a quick reminder that our Spring Membership Special has begun! This is an opportunity for members to save a LOT of money while supporting the work we do. Just click on this link Spring Special to learn more. And remember, any remaining time on your membership will be added to your account. Now, on to the market.

One could argue that the market is overbought here but try telling that to the bulls. One day after the Dow crossed 40,000 for the first time, all of the major indexes are slightly higher.

Interestingly, today is monthly options expiration with a definite imbalance of calls to puts. In other words, just about everyone is long which can often lead to profit taking. But the VIX is back in the 12's indicating no real fear so no one is selling stocks.

What might change the tone of the market? Perhaps some sudden selling for no particular reason. That doesn't seem likely at the moment with all of the major indexes comfortably above all key technical levels. Nonetheless, we should at least be mindful that the market is stretched here.

Not much more to say right now and Tom will be back on Monday with his Weekly Market Report.

At your service,

John Hopkins