EB Daily Market Report - Friday, May 2, 2025

Dear members.

The bulls are out in full force today with all of the major indexes up sharply.

The strength in the market today is partly due to renewed belief in some type of solution to the tariff situation as well as some strong earnings from some key companies. But a few observations are in order.

First, the S&P has climbed back to the April 2 high of 5695 which is important resistance. This comes after 8 straight days higher. Next, while the VIX has steadily moved lower, it still remains in the 23 level; fear is not at a level where we can entirely relax. Next, bond yields are back on the rise with the 10 year back above all key technical levels on the strength of this morning's jobs report and with the realization that the Fed is likely to be cautious when it comes to potentially cutting rates.

For sure the market could continue higher here but it's made a very substantial move just as it hits that 5695 resistance level. So it makes some sense to consider locking in some nice profits in case we've made a near term top. If we do see some profit taking watch to see if the 50 day moving average, currently at 5582, holds. And if we can clear today's high of 5697 there's likely to be big time resistance at the 200 day, currently at 5746.

I hope you all have a restful weekend and Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins