EB Daily Market Report - Friday, May 9, 2025

Dear Members.

Traders continue to digest tariff related news that seems to change from minute to minute with all of the major indexes lower as we get ready to close out another trading week.

The good news is stocks are well off their respective April 7 lows. On the other hand, the market has stalled the past week with all of the major indexes struggling to move back above their 200 day moving averages. In the case of the S&P its 200 day is currently at 5748. You can bet this will be a key level of resistance should the bulls manage to test that level. 

I have noticed that the 20 day on the S&P is trying to close back above its 50 day. which hasn't occurred since early March, and if it is successful, that would be bullish.

The VIX continues to weaken but it's still trading near 22; not low enough to say we're out of the woods. And bond yields have moved quite a bit above recent lows; the Fed is in no hurry to lower rates.

Next week should be interesting with officials from both ther US and China meeting to discuss tariffs. Traders will be watching the headlines for any further clues on what might come next. So we might have a better of idea of what might come next once trading begins on Monday.

Tom will be back with his Weekly Report on Monday.

 At your service,

John Hopkins