EB Daily Market Report

Dear Members:

New record highs in both the S&P and NASDAQ as traders remain in a bullish mood as we get ready to close out another trading day and week.

Interestingly, the moves higher come during an historically weak market period and with monthly options expiring with a large imbalance of calls to puts. In other words, many more bets on the long side which could be more costly for market makers. 

Also worth noting is that it's not uncommon for "Max Pain" to remain in play the first few days of the week following Friday's expiration. This may or may not play out but technically, both the S&P and NASDAQ are overbought, so at least keep this in mind.

The new high on the S&P, 6653, is now resistance. To the downside, 6536, the current 20 day moving average, is the first key technical level of support.

Not much more to report with the bulls currently solidly in control.

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

Hope everyone has a restful weekend!

At your service,

John Hopkins