EB Daily Market Report - Brief Update - Thursday, January 16, 2025

This will be a very abbreviated market update as our EB team is having our annual meeting all day today.

Our major indices are mostly higher today, with only the NASDAQ struggling and in negative territory. The Volatility Index ($VIX) has dropped again and is back below the key 16-17 level. Lower expected volatility increases the odds of a continuing rally, in my opinion. There still is overhead price resistance that needs to be cleared. For instance, on the small cap IWM, overhead price resistance resides in the 226-227 range.

The S&P 500, at last check, was trading at 5952 and its 50-day SMA is at 5962. I'm viewing most major indices as being in a range, with the recent price low as support and all-time highs as resistance.

From a sector/industry perspective, renewable energy ($DWCREE, +3.74%) is showing strength, though it's got a lot of upside to go to really turn its chart around. Most of that strength is due to today's gain in First Solar (FSLR, +3.90%). Other renewable energy stocks are not necessarily keeping up, however, as Enphase Energy (ENPH, -3.46%) is breaking down beneath 65 price support.

One negative today is that our most aggressive sectors, XLK, XLY, XLC, are our 3 worst-performing sectors today. A big advance with these 3 groups failing to participate would not be very bullish. I'd like to see these sectors OUTPERFORM and accompany major index breakouts.

The 10-year treasury yield ($TNX) is down another 4 basis points to 4.61% as money rotates a bit back into treasuries after tame inflation reports were released this week.

We'll take another look at the action tomorrow.

Happy trading!

Tom