EB Daily Market Report - Friday, May 16, 2025

Dear Members.

It's options expiration Friday and so far the bulls are holding their own with all of the major indexes higher.

In looking at the S&P the RSI is close to 70 and the put/call ratio dipped to .41 yesterday while the VIX is now back in the low 17's; seems like everyone is comfortable being long, in spite of very overbought conditions.

The S&P got as high as 5930 with the next level of resistance right near 5960. If traders decide to lock in profits and we see some selling the first level of support will be near 5865 then 5786.

There aren't really any key economic reports due next week and most of the key earnings reports are now behind us. The next very big report will be week after next when NVDA reports its numbers. So a pretty quiet week as traders look for the next catalyst that could take stocks higher or lower. But for now it makes sense to be a bit more cautious given the non-stop gains of late and some key indicators showing we could be in store for a pullback.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins