EB Daily Market Report - Friday, February 13, 2026

Dear Members:

The January CPI report released this morning showed some easing of inflation with a fairly muted market response as stocks continue to remain in a fairly tight trading range.

The release of the report comes one day after a rough day for the bulls and with the VIX closing over 20 and remaining above that level this morning as traders wonder if the worst of the selling is over.

The reluctance of traders to take advantage of the move lower comes ahead of a time of the year which has favored the bears. We've also got monthly options expiring next Friday and a holiday shortened week which could add to the volatility.

Though we've seen traders willing to get involved in stocks outside the Magnificent 7, it's hard to imagine the market advancing much further when the biggest of the big are out of favor. And it's not helping that the financial sector has broken down with the XLF now trading below all key technical levels.

Bottom line is the S&P is trading in a range of 7002 (most recent high) to the upside and 6780 (the most recent low) to the downside. So let's keep our eyes on these levels while remaining on the cautious side for the time being.

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

At your service,

John Hopkins