EB Daily Market Report - Friday, December 5, 2025

Dear Members:

We got some fresh economic inflation data this morning that seemed to please traders at first but have since seen the market settle down some with all of the major indexes green but off session highs.

Looking back at Tom Bowley's cautious comments in his weekly report on Monday, the S&P has remained in a tight range, neither shooting higher or falling lower even though we are in seasonally bullish time of the year and with traders expecting the Fed to cut rates when they meet next week. So one has to ask, what will it take to get traders more more aggressive on the long side or to step to the sidelines?

For all intents and purposes, earnings are mostly out of the way though ORCL will report its numbers next week. And since ORCL and some other companies associated with AI have been under fire for some questionable financing transactions, maybe a positive or negative report from ORCL will become more meaningful for the overall market.

Of course the Fed rate decision next Wednesday is likely to stir up some action, depending on the statement following the expected .25 basis point reduction. So between ORCL's earnings, the Fed meeting and what is generally a favorable market period, perhaps we'll see the market break out of its current tight range.

The range on the S&P right now is 6920 to the upside - the October 29 high - and 6780 to the downside, representing the 20 day moving average. And until one of those goes, expect mostly sideways action.

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

At your service,

John Hopkins