EB Daily Market Report - Friday, July 11, 2025

Dear Members.

Last night the headlines said the US would be slapping a 35% tariff on our close neighbor and ally, Canada. Futures instantly went deep red on possible ramifications. But then trading in the US got underway this morning and the market shrugged it off as no big deal. Thus, once again showing any news these days seems to be seen as either good or irrelevant with the S&P slightly lower while the NASDAQ is slightly higher.

One could argue that traders have their collective heads down and that the market is due for a decent correction. But the bulls have a strong grip on the market during a bullish time of the year and with earnings season about to kick in to high gear starting next week when the big banks report their numbers starting on Tuesday. That will be followed by some other heavyweights including Taiwan Semiconductor and Netflix on Thursday. 

It's hard to know exactly what to expect but traders were pleased with both Delta's and Levi Strauss's numbers yesterday showing consumers continue to spend money. And we'll get more cluse when the big banks reveal their numbers Tuesday morning.

The VIX was threatening to move higher this morning before settling down. And yes, interest rtes have moved higher but still remain low by all historic measures. 

Bottomline is until we see evidence to the contrary, the bulls are in charge. 6290 on the S&P is now the level the bulls need to clear to take the market higher. And if we do get any selling the first key technical level of support on the S&P is the 20 day moving average, currently at 6151.

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

At your service,

John Hopkins