EB Daily Market Report - Friday, June 13, 2025

Dear Members.

The market had been pumping on all cylinders up until yesterday and sudden events in the middle east have put traders on edge with all of the major indexes lower.

Even prior to yesterday's developments the market was stretched. For example, the RSI on the NASDAQ was right near 70, a level that often signals time for a pullback. In addition, the VIX had gotten to a level showing increased complacency. Thus, the market was ripe for some selling.

Actually, all things considered, the pullback we've seen today has been mostly orderly, even as oil has spiked 7% on supply concerns. Given the S&P was within striking range on matching its all time high, a pullback of less than 1% on the troubling developments has to be considered quite contained.

What we need to watch for now is to see if stocks steady or if the market deteriorates into the weekend. So far both the S&P and NASDAQ remain above all key technical levels. In the case of the S&P the first key technical support will be the 20 day moving average, currently at 5930. And if tensions cool over the next few days the bulls are might try to take another stab at that all time high of 6147.

In the meantime, let's see what happens into the close as we wrap up another trading week and can then reasses come Monday.

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

At your service,

John Hopkins