EB Daily Market Report - Friday, March 28,, 2025

Dear Members.

We've got quite a mess out there today with all of the major indexes down substantially. This comes on the heels of a hotter than expected inflation report this morning and growing worry about the impact tariffs might have on the economy, individuals and the overall market.

Tom brought it to my attention earlier that the consumer discretionary sector (XLY) was getting hammered relative to consumer staples (XLP.) In other words, consumers thinking more about taking care of their basic needs, especially if things worsen.

There's really no sugar coating today's action; all of the major indexes are below all key technical levels with the S&P threatening to revisit the most recent low of 5504. And this is coming before the weekend with traders unwilling to take any unnecessary chances. Plus the VIX has picked up again as it nears 22; totally favoring the bears.

Of course things could always change quickly but right now that does not appear likely. The current trading range is 5504 to the downside and 5786 - the recent high - to the upside. Maybe if we get closer to that 5504 level we might see some nibbling and some short covering. But for now we must remain in cautious mode.

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

At your service,

John Hopkins