EB Daily Market Report - Brief Update - Tuesday, April 22, 2025

Turnabout is fair play. Yesterday, the bears were in control nearly all day after an early gap down and further selling the next few hours. But the bulls showed some resilience and our major indices recovered a portion of the intraday losses by the close.

Now let's fast forward to today's action. The bulls grabbed early control of the action after higher futures led to a strong start at the opening bell. We saw follow through to the upside, a brief period of selling, and over the past 30 minutes or so, the buying has resumed.

The net effect? A complete wash. The S&P 500 is trading almost exactly where it was at the close last Thursday, just before the holiday weekend. In a nutshell, this is exactly what we're working with right now - a highly volatile market within a very large 700+ point trading range on the S&P 500 that spans from 4800 to the downside all the way up to the recent price breakdown at 5521. That prior support is now our biggest price resistance.

Earnings are starting to come out. I haven't researched to see which companies beat revenue and EPS estimates, but I can provide you several companies that reported and what's happening technically with their respective price action:

• GE: 187.50-190.00 is a very important area of resistance, both price and gap. GE gapped higher, pulled back and now has rebounded to just above its 20-day EMA. I still want to see 190.00 cleared, however.
• WRB: showing excellent relative strength and has bounced beautifully off its rising 20-day EMA support
• MEDP: HUGE reversal off 52-week low on massive volume. We may have seen the final bottom on the MEDP chart as it appears that an exhaustive gap has printed. Beautiful positive divergence also in play here.
• HXL: false breakdown double bottom? Could be.....but poor relative strength remains a concern.
• CALX: very strong, bullish earnings reaction. Awesome AD line as well. CALX could be on its way to returning to its 52-week high.
• LMT: high wave candle - long tail to the top and long tail to the bottom, small candle body. This is a candle that shows a TON of indecision. Usually, the subsequent action and break provide us a glimpse into its future direction.
• DGX: ran all the way up to test its 52-week candlebody resistance. Then failed. Relative strength looks good here though. A pullback down the road to test a rising 20-day EMA could provide a very nice reward-to-risk trade.

After the bell today, we'll get the latest from Tesla (TSLA) and Intuitive Surgical (ISRG). Tomorrow morning, I'm interested in seeing how Check Point Software Technologies (CHKP) reports. They show excellent relative strength heading into their earnings report, which many times precedes a blowout report. We'll find out in the morning.

Happy trading!

Tom