EB Daily Market Report - Friday, October 3, 2025

Dear Members.

The bulls are in total control - government shutdown notwithstanding - with all of the major indexes reaching record highs as we get ready to close out another trading day and week.

It almost seems useless to state the obvious; the market is very stretched here. Perhaps we'll get some more definitive signs if the market gets to a level that is unsustainable. But for now, traders have their collective heads down as the market powers higher.

It is worth noting that small caps are helping to lead the charge today with the IWM now at an all time high. This certainly should come as no surprise to EB members as our Chief Market Strategist Tom Bowley has been predicting a strong move in small cap stocks for quite a while now.

When indexes hit fresh all time highs, it makes it easier to point to resistance levels with 6747, today's high now a level the bulls must clear to take the market higher. To the downside, 6630, the current 20 day moving average, is the first key level of technical support.

Not much more to say. Barring an "out of the blue event" - which is always a possibility, especially in a stretched market - we've got to respect the bullish action.

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

At your service,

John Hopkins