EB Daily Market Report - Brief Update - Tuesday, April 28, 2026

A couple things first.....

All ChartLists have been updated as of last Friday, April 24th, and can be found on our website. The only weekly piece that I wasn't able to update was the Key Manipulation spreadsheet, which I'll update this weekend.

Next, we're having our Q1 Earnings event at 5:00pm ET today. I'll be looking at the Mag 7 charts that include those companies reporting their quarterly results either Wednesday afternoon or Thursday afternoon. I'll also discuss which areas of the market are being favored by Wall Street, discuss some of the earnings reactions to date, and provide a list of companies that I expect to see blowout earnings. Room instructions have been mailed out separately.

Now onto the market....

OpenAI reportedly missed some of its internal revenue targets and that had a significant impact on many companies with ties to AI infrastructure. Oracle Corp (ORCL, -3.72%), with a 5-year contract with OpenAI, was hit significantly at the opening bell, but is well off of its earlier low. Many chip stocks ($DJUSSC, -2.55%) have seen profit taking today, some more than others, but most companies are well off their earlier lows - similar to ORCL.

Interestingly, with nearly every major index lower, the Volatility Index ($VIX, +0.28%) has barely budged higher. That's a solid indication that the current selling episode is unlikely to be like what we experienced in March. Nothing is a guarantee, of course, but I like the bulls' chances to keep price action above rising 20-day EMAs in the coming days.

When we get selling like today, I believe that running 20-day EMA test scans against our key ChartLists (SECL, SFECL, RGCL, and SADCL), like the one we provide on our website, can yield interesting short-term trading candidates. When I ran the scan today, I found Rocket Lab USA, Inc. (RKLB), an aerospace company ($DJUSAS). RKLB has seen its RSI drop from overbought at slightly above 70 down to the current level of 52, a much better RSI level for entry. RKLB is also testing the top of gap support and its rising 20-day EMA:

There is no guarantee that this trade works and becomes profitable, but part of successful trading is appropriate timing and risk management. This trade checks both boxes, in my opinion. If it doesn't hold gap support and the 20-day EMA, it can be sold for a minimal loss. The breakout on April 16th occurred on heavy volume, while today's pullback of 5% or so is on much lighter volume.

Happy trading!

Tom