EB Daily Market Report - Friday, August 22, 2025

Dear Members.

There was a lot of hype leading up to today's speech at Jackson Hole by Fed Chair Jerome Powell - what might he say that could impact the direction of the market? Well, we are seeing how traders interpreted his words with all of the major indexes substantially higher.

In fact, the Dow has hit an all time high and all of the major indexes are back above all key technical levels. And small cap stocks are soaring with the Russell 2000 up over 3%. And the VIX has retreated back below 15 as fear has subsided as well. 

As usual, we'll want to see if today's gains hold; will we see a new all time high on the S&P as well? Or might we see some profit taking? That all time high is 6481 and it got within a few points of that level earlier in the session. And on the recent selling leading up to today the 20 day moving average, currently at 6385, held. So this is a level to watch to the downside.

Bottom line is the bulls are squarely in charge here, barring some type of unexpected reversal. Nonetheless, let's keep our eyes on the action into the close "just in case."  

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

At your service,

John Hopkins