EB Daily Market Report - Brief Update - Thursday, May 29, 2025

We've seen significant volatility over the past 24 hours. NVIDIA Corp (NVDA, +3.25%) opened higher after reporting strong quarterly results and then futures really soared when it was announced that the Federal Trade Court had ruled that the President did not have authority to place blanket tariffs on foreign nations. However, that strength and optimism waned overnight and more modest gains were seen at the market open. During today's session, we've seen our major indices actually turn red, but then recover and turn green again. It'll be interesting to see how we close out today.

The Volatility Index ($VIX, -1.14%) has been quite volatile throughout the day, at one point gaining nearly 5%, while at the open it was down roughly 3%. Clearly, market participants are struggling on whether to view this court decision and the likely appeals ahead as a positive or a negative as we move forward.

For me, I'm still looking strictly at the charts, not the news. That's what works for me. Here's how things look today from a sector perspective:

There's a bit of a "risk-off" mentality today, but I can't really blame anyone for being a bit more defensive. I think the key will be what happens from here. I would still treat the market as though we're in a secular bull market advance and I wouldn't change anything from a support standpoint. We need to watch the rising 20-day EMAs and key gap support, both top and bottom gap support, from the May 9th close to the May 12th open.

Happy trading!

Tom