EB Daily Market Report - Friday, October 10, 2025

Dear Members.

The bears decided enough was enough and welcomed fresh news of possible increase of tariffs on China with all of the major indexes down sharply.

It should be pointed out that 1% corrections on the S&P this year have been extremely rare. So one could argue that a day like today was way overdue.

The sudden, sharp move lower has resulted in a VIX back over 20 as it touched a level not seen since early August. So now we'll see if traders see this as just another opportunity to buy on the dip or if we need some additional selling to attract some fresh money.

Presently, all of the major indexes have tested or dipped below their respective 20 day moving averages. In the case of the S&P the 20 day is at 6660. So that's a key level to watch as we get ready to close out another trading day and week. If selling picks up the next key level of technical support is at the 50 day, currently at 6531.

The bulls have been extremely resilient, especially since the April 7 low. So today's selling will be another test to see if we're seeing just a short term blip or if we need to see stock prices lower before any move higher resumes.

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

At your service,

John Hopkins