EB Daily Market Report - Friday, December 20, 2024

Dear Members.

After taking a pretty good pounding the past two sessions, traders are in a much better mood with all of the major indexes up nicely as we near the end of another trading week.

Today's spike comes on the heals of some cooler than expected inflation data this morning, particularly one that the Fed sees as an important barometer, the PCE price index, resulting in lower government bond yields and a substantial 24% decline in the VIX.

The move higher today comes as monthly options expire today and as we head into a very bullish period of the year. So the bulls are feeling much more confident today with the tech heavy NASDAQ now back above all key technical levels, with the S&P back above its 50 day and the Dow still needing some additional gains to give the bulls the technical advantage.

As it pertains to the S&P, a close back above its 20 day, currently at 5993 would be bullish. To the downside watch to see if the 50 day, currently at 5927 is able to hold.

Assuming the major indexes hold their respective gains, it would be a good way to end the week as we get closer to the holidays and to a very bullish time of the year.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins