EB Daily Market Report - Friday, August 2, 2024

Dear Members.

It's clear from the action the past few sessions that bad news has become bad news and that includes this morning's jobs report showing fewer jobs created than expected with a rising unemployment rate. 

If one wanted to try to put a positive spin on things you might point to the fact that interest rates have come down substantially so the Fed tightening has worked. However, the market is interpreting things differently with the R word now front and center.

Fear has picked up big time with the VIX at its highest level since March, 2023. Thus the big time pick up in selling.

Both the S&P and NASDAQ are now below their respective 20 and 50 day moving averages, so technical damage has occurred. If the S&P loses 5300 then 5200 would be the next key level of support. To the upside, the 50 day is right around 5450. Unless/until that is recaptured the bears will remain in control.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins