EB Daily Market Report - Thursday, May 7, 2026

Dear Members.

A brief update today as Tom is tied up this afternoon.

The market is showing signs of fatigue after moving almost non-stop higher since the March 30 low with all major indexes lower.

While we've seen some minor profit taking, there are no signs that traders are overly concerned; the $VIX is flat, remaining in the lower 17 range.

The NASDAQ has been particularly strong since that March bottom, up almost 26% in just five weeks as it touched 26,000 for the first time in history. It's certainly understandable if traders lock in some profits. 

We do want to see how the session ends; if selling picks up and stocks close in negative territory we might experience a near term top. But even then, given the market's strength, any selling could be short-lived.

The S&P put in a fresh high of 7385 earlier in the session so that is now new resistance. Should we see selling pick up, yesterday's low of 7294 would be the first level of price support, then 7233 with technical support at the 20 day moving average, currently at 7115.

At your service,

John Hopkins