EB Daily Market Report - Friday, May 23, 2025

Dear Members.

Just a reminder that our annual Spring Special is now underway. You can check out our discounted prices using THIS LINK. Be sure to take advantage of this special before it's too late!

Things got more interesting this morning when AAPL got a message that it should figure out a way to make its phones in the US. Then there was a headline saying the US is not pleased with the progress in tariff talks with the EU. As soon as those headlines hit futures tanked with the VIX climbing over 25 before settling down some.

The selling we've seen today is not totally surprising. It's been pretty straight up since the April 7 bottom, to the point where the major indexes were overbought. So the selling today at least relieved the oscillators that had gotten stretched.

The early selling came to a halt when the S&P touched its 200 day moving average at 5772. In fact it moved slightly below before buying kicked in. So the bulls did what they needed to do, with both the S&P and NASDAQ both remaining above all key technical levels.

We've got a three day weekend coming up so we'll want to see what happens in the last two hours of trading. If the bulls can hold the line at the 200 day then we many have dodged a bullet. However, if selling picks up and the S&P closes back below its 200 day that will be a sign for us to be more cautious in the near term.

At your service,

John Hopkins