EB Daily Market Report - Friday, August 16, 2024

Dear Members.

It's hard to believe the S&P was near 5100 and the VIX was 65 just last week. If you had gone on vacation and turned off your phone and TV you would have thought everything was just status quo. And now after what appears to be a "one off" event has come and gone the S&P is one really good day away from its all time high.

Of course it's not just the S&P that has marched higher. All of the major indexes have made substantial moves to the upside. In fact, the NASDAQ has climbed 12.5% since the big correction, a move some would consider to be a good year.

Right now there's no signs of slowing though one could argue the move off of that 5100 low has been a bit much, especially given seasonality; August and September have not been the best months to be long stocks. Presently, all of the major indexes are back above all key technical levels with the NASDAQ lagging a bit. 

The first key technical level of support on the S&P is 5454 with the next key level of resistance the all time high of 5669. Accordingly, we should keep an eye on these levels to give us clues as to what might be next.

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

At your service,

John Hopkins