EB Daily Market Report - Friday, June 14, 2024

Dear Members.

Another week about to end and so far completely controlled by the bulls with virtually every dip seen as a buying opportunity, particularly on the tech heavy NASDAQ in spite of a very high RSI approaching 80. 

Traditionally, a RSI of 80 is a warning sign that a stock or index is in extremely overbought territory. And technically, that is clearly the case here. But we're in the midst of a raging bull market where traders appear to be ignoring some warning signs as they pounce on any pullbacks. Still, for those who tend to be more conservative it might not be a bad idea to raise some cash "just in case."

One other thing to point out. The VIX is up over 7% but well off the day's high of 13.45. So it's worth keeping an eye on that as well, especially if we see any late day selling that might increase the fear meter, at least in the short term.

Next week should be interesting as there aren't really any major tech stocks reporting earnings and no major Fed events. We will get retail sales numbers on Tuesday which will give us a glimpse of consumer spending. The market will also be closed on Wednesday in observance of the Juneteenth holiday. So all in all a fairly quiet week ahead.

That's it for today and Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins