EB Daily Market Report - Tuesday, April 8, 2025

Dear Members.

The bulls were quite hopeful earlier in the day but now have seen most of the gains on all of the major indexes evaporate with traders clearly in a sell on the bounce mood.

The VIX had pulled back some but as selling picked up is back near 50 showing traders continue to be very nervous, especially with tariff talk and imminent implementation hogging the headlines.

We're also seeing yields on government bonds spiking, up 40 basis points since hitting fresh lows just two days ago. This flight to safety is another indicator that stocks remain out of favor.

We've now got a clear range in the S&P of 4835 to the downside and 5292 to the upside. We're pretty much right in the middle of the range; directionless while waiting to see how the market closes.

Bottomline is we need to be very careful here. If the bulls are able to take the S&P back above that 5292 level then we could see stocks move higher. However, a move back below yesterday's low of 4835 would indicate further selling is likely.

Tom will be back with his Daily Market Report tomorrow.

At your service,

John Hopkins