EB Daily Market Report - Friday, November 1, 2024

Dear Members.

We've got a new trading month and so far traders seem to be glad we're out of the month of October. Though the market has not regained all of the losses from yesterday's nasty session we're still seeing all of the major indexes in positive territory.

The market is hanging in there in spite of mixed earnings from some of the largest market cap companies in the world and in the face of the upcoming election in just a few days. And while on the surface today's jobs report showed some weakness the bulls are seeing it as a green light for the Fed to lower rates another .25 when they make their announcement next Wednesday.

But yesterday's heavy selling did cause some technical damage with all of the major indexes now trading below their respective 20 day moving averages. And though the VIX has settled down some it's still right near 22, a level that is showing traders should keep one finger on the sell button, just in case.

The 20 day moving average on the S&P is currently at 5785, a level that the bulls will need to regain if they hope to take the market higher. And yesterday's low of 5702 should now be considered support as a move below that level could result in additional selling.

Next week is actually the busiest time of the earnings season with over 1500 companies reporting their numbers. Toss in the election, the Fed interest rate decision and additional economic reports and you can see why there's a strong possibility that the market will continue to be quite volatile.

Wishing everyone a restful weekend!

At your service,

John Hopkins