EB Daily Market Report - Friday, November 21, 2025

Dear Members.

For quite a while now the bears were puzzled that the market had not experienced any meaningful pullback and now we are seeing selling that could be categorized as significant with the NASDAQ down almost 9% from its all time high while the S&P is down close to 6%.

The selling in stocks seems to be connected in some fashion to crypto assets with Bitcoin down 35% from its all time high and non stop selling for well over a month. This selling speaks to investors looking to "de-risk" some which is also evident in some individual stocks that are linked to the AI space.

This all around selling is coming at a time that is generally very favorable for stocks; that certainly has not been the case so far in November. Add to this the sharp intra day reversal iyesterday in equities after NVDA's better than expected earnings report and you can see why traders are spooked.

Interestingly, while the VIX spiked sharply yesterday it remains flat today, perhaps one indication that we are closer to a bottom than some might think. And currently all of the major indexes are well off session lows, perhaps a sign that traders are now starting to buy on the dip.

In looking at the S&P the 6500 level starts to look as an important level that the bulls need to hold. We got as low as 6521 earlier in the session so we'll want to keep an eye on that level as we get ready to close out another trading week.

Though the RSI is only one sentiment indicator, anytime it gets near 30 that is generally a sign that the worst of the selling might be over. Both the S&P and NASDAQ are closing in on that level so perhaps traders will start to be willing to take on a bit more risk, especially as we move into a very bullish time of the year.

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

At your service,

John Hopkins