EB Daily Market Report

Dear Members.

We're nearing the end of another trading week with all of the major indexes higher and both the S&P and Dow hitting new record highs.

The move higher comes on the heels of the CPI and PPI reports which were actually a bit hotter than expected, reducing the odds that the Fed will reduce rates as rapidly as traders had hoped. Still, there's no denying that the bulls are in complete control at the moment.

Interestingly, we'll have monthly options expiring Friday of next week and we'll have our Options Max Pain webinar on Tuesday and barring any sudden fall in the market I would imagine we're going to see quite an imbalance of calls to puts. Might that trigger some selling? Maybe but it's too early to tell.

Now that the S&P has put in a new high, what might be next? Today's high was 5819 and if we clear that level perhaps 5850 might be next. To the downside the 20 day moving average is at 5713. So that's our range for now.

Wishing everyone a restful weekend and Tom will be back with his Weekly Report on Monday.

At your service,

John Hopkins