EB Daily Market Report - Friday, September 12, 2025

Dear Members.

Another record high on both the S&P and NASDAQ as we get ready to close out another trading day and week.

This continuing momentum includes the bulls focusing on anything positive and ignoring anything negative ahead of next week's Federal Reserve meeting where a 25 basis point cut is the most likely outcome. 

There are plenty of positives with overall earnings seeming to satisfy investors and a wide participation of stocks instead of relying solely on the Mag 7 to take the market higher. On the negative side inflation hasn't ebbed as much as the Fed might like to warrant a bigger rate cut.

Worth pointing out is the RSI closing in on 70 on both the S&P and NASDAQ, just ahead of the Fed meeting and into one of the most challenging calendar periods over the next few weeks. Generally, a RSI of 70 on the major indexes indicates the market might be getting a bit stretched. None of this might matter if the bulls keep the momentum but we should at least be aware of the potential downside risk.

With a fresh high today, resistance on the S&P is now 6594 - just a few points short of a nice round 6600. To the downside, the first key technical level of support is 6479.

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

At your service,

John Hopkins