EB Daily Market Report - Friday, June 7, 2024

Dear Members.

Traders were hoping for a tame jobs report this morning, one that might lead the Fed to start lowering rates. So when the numbers, including the wage component, came out much stronger than expected, the futures immediately turned red. But as the day went on it seems as though what was thought to be "bad news" turned out to be "good news", at least for the economy with all of the major indexes moving higher. In fact, the S&P has set a new record high with the NASDAQ not far behind.

I should point out that government bond yields have spiked with the 10 year Treasury Note adding almost 15 basis points. That's a big move in one day but for now traders have chosen to ignore it. The VIX also seems to have settled down, though off the most recent lows, as trader's have decided to take today's jobs report in stride.

Barring some major selling into the close, the bulls should be very pleased. In the meantime the new all time high on the S&P is 5375 with the next logical resistance up at 5400. The first key level of technical support is the 50 day moving average, currently at 5280. Those are the two numbers to watch for now.

Wishing everyone a restful weekend,

John Hopkins