EB Daily Market Report - Friday, August 9, 2024

Dear Members.

The bulls have been working overtime to overcome Monday's swoosh to the downside with all of the major indexes higher as this volatile week nears an end.

Speaking of volatility, the VIX is still showing some fear as it remains above 20 but nowhere the high of 65 we saw on Monday. So still elevated some but showing signs that traders are more willing to consider being long.

The bears will argue that the recent technical damage favors them. They are correct if you look at all of the major indexes which remain below their respective 20 and 50 day moving averages.

Still. the bulls have gained some confidence with the recovery off of Monday's low. Now we'll need to see if the technical damage can be repaired, starting with the S&P which needs to clear its 20 day, currently just below 5400. Until we see further evidence that the selling is over we should err on the side of caution.

Tom will be back Monday with his Weekly Market Report.

At your service,

John Hopkins