EB Daily Market Report - Wednesday, June 18, 2025

Dear Members.

Today the FOMC decided to hold interest rates at current levels citing concerns with the possible impact on inflation from tariffs. So far traders are taking the Fed's actions in stride though the major indexes are off their session highs.

Bond rates did tick up a bit higher but nothing meaningful. And so far the VIX is lower for the day but still remains above 20 as traders ponder their next moves.

Of course it's not unusual for the initial market reaction to look different the next day and with the market closed tomorrow for the Juneteenth holiday traders will have to decide how exposed they want to be come Friday.

An added element to consider in the near term iis that monthly options expire on Friday. While our analysis shows some imbalance of calls to puts we see this only as a directional clue, secondary to price and volume.

The bulls currently maintain the upper hand with both the S&P and NASDAQ above all key technical levels. In the case of the S&P the 20 day is currently at 5946 with the bulls continuing to eye that all time high of 6147. So let's consider that to be the trading range for the moment.

At your service,

John Hopkins