EB Daily Market Report - Tuesday, October 8, 2024

Dear Members.

Tom Bowley is out for the day but will return with his regular Daily Market Report tomorrow.

If you like volatility then you should like the past two sessions with traders turning from bearish to bullish, at least as it pertains to the S&P and NASDAQ.

What's different about today than yesterday? Hard to say but traders do seem to be in a buy the dip mood again.

Interest rates continue to climb as traders start to realize the Fed is less likely to be overly aggressive when it comes to rate cuts. But it could also be a sign that the economy is stronger than many expect.

The bears are having a hard time making their case, witness the S&P holding its own since it made a bottom on September 11. Now the bulls want to make a statement by clearing the recent all time high of 5767 which is really just one decent rally away.

If we do see any selling watch to see if the 20 day moving average on the S&P holds, currently at 5683. It's a very narrow trading range at the moment with the bulls having the edge until further notice.

At your service,

John Hopkins