EB Daily Market Report - Thursday, April 3, 2025

Dear Members.

Tom is dealing with a family medical emergency so I would like to give you a brief market update.

Obviously, we're seeing a clear breakdown on all of the major indexes as traders make it clear they are not happy with the announced tariffs. 

The severity of today's selling is something we have not seen in quite a while with the tech heavy NASDAQ getting hit the hardest.

Though some might see this as a great opportunity to nibble on beaten down stocks there has been very little bounce; traders are in no mood for further losses. So the question becomes, how low might we go?

There were two times back in September of 2024 where the market held just above 5400 with today's low so far at 5415. Should 5400 go the next level of support is right around 5375.

The VIX is showing a big spike in fear as it challenges the most recent highs in march of 29.56. If selling picks up into the close we could see it move even higher with traders getting more defensive ahead of tomorrow's monthly jobs report. Perhaps one more spike to the upside will indicate enough fear to start thinking about doing some fishing for fresh opportunities.

We've been in caution mode for quite some time now and that remains the case. Short of some heavy buying and a reversal into the close we need to tread lightly here.

At your service,

John Hopkins