EB Daily Market Report - Friday, September 6, 2024

Dear Members.

Today's jobs report came out a bit weaker than expected with downward revisions to earlier reports and so far traders are not liking what they saw and heard with all of the major indexes down substantially.

In what has been a continuing pattern the bears are particularly focused on punishing tech stocks with the NASDAQ currently down over 2.5%. And the VIX is up almost 20% as traders shed positions and move to the sidelines.

The S&P is back below both its 20 and 50 day moving averages with the next key level of price support just above 5375. That's still a long ways from that August low of 5119 but is still a level that traders think could be revisited unless buying on the pullback resumes.

There's little chance of the bulls regaining momentum unless they are able to reclaim the 20 day moving average on the S&P, currently at 5525. Right now that seems like a tough task, especially if selling picks up into the close.

Bottom line is to proceed with caution here while looking for a reason to taking on new positions. For sure the NASDAQ is approaching oversold conditions with its RSI in the mid 30's and perhaps we'll see some nibbling soon on some of the most beaten down stocks. But heading into the weekend there's no need to take on additional risk.

Tom will be back with his Weekly Report on Monday.

At your service,

John Hopkins