EB Daily Market Report - Friday, September 20, 2024

Dear Members.

Fed week is about to come to an end and in spite of some weakness today the bulls should be happy coming off of record highs on both the S&P and Dow yesterday.

The bears will argue that the recent rally has been too much but traders continue to buy on any weakness. We'll see if that holds as the day goes on and as options triple witching takes place into the close.

It is interesting that treasury yields continue to climb in spite of the Fed's decision to lower rates. But the VIX continues to move lower as it moves towards a level seen earlier in the month and well off the recent peak near 24 as fear subsides some.

We do need to keep in mind that we've entered a very bearish period of the year. It might not matter at the moment but we should at least be prepared in the event we see any sudden selling.

For now there's resistance on the S&P at yesterday's high of 5733. To the downside we should keep an eye on today's low of 5674 as a move below that level could result in more selling.

Enjoy your weekend!

At your service,

John Hopkins