EB Daily Market Report

Dear Members.

It's early in the session but the market is under pressure after today's jobs report painted a mixed picture with the wage component much higher than expected which in turn has put upward pressure on bond yields. In addition, U.S. consumer sentiment dropped sharply , hitting its lowest level since July of last year.

A disappointing earnings report from GOOG along with a negative response to AMZN's earnings along with AAPL struggling to gain traction has put pressure on the NASDAQ as it tries to hold above both its 20 and 50 day moving averages. And though there are still plenty of earnings reports coming out over the next few weeks the ones that matter the most have already reported leaving traders to ask, "what comes next?"

Of course we've seen traders scoop up stocks on recent pullbacks which we could see again. And let's keep things in perspective; the S&P is still one decent day away from getting back to its all time high.

Still, as Tom Bowley has been pointing out of late, there are some signs that we might see some additional selling in the near term. If that turns out to be the case we should watch to see if the S&P first holds 6000 level. If that level were to go we could see a revisit of the February 3 low of 5923. To the upside, the bulls will be looking to reclaim that January 24 level of 6128. So keep an eye on these levels as we head into the weekend and Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins