This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this.
This news looks to be better for the market, although I still feel like anything suggesting a closer indication to tapering also means that we're getting closer to a rise in interest rates. That would be strong for the USD and bad for equities. But investors might be taking this as a recovery in the economy as inflation slows, so this week could be good for the stock market as long as the end of the week's jobs claims come in good as well.
US equities look like they're able to catch support as the SPX500 finds support on the 200 SMA on the 4H chart. Lower inflation data could be indicating that the market will find some momentum to the upside. However, price has to break above that previous top to get that extra for it to look truly bullish in my opinion. We are looking at a series of higher highs and lower lows which could mean the SPX is in a wedge for the time being.
Tech stocks look like they're in the same boat as the NAS100 is starting to form a wedge as well. Resistance lies at $15,543 while the index retraces on a lower high. We could be seeing mixed movement in both indices today as investors try to decide where the market should go.
9/24/2021 The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%. Our outlook I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short […]
Let's look into the Bank of England's Monetary Policy Summary which took place on Thursday the 23rd of September, 2021. Quick Summary: BoE keeps interest rates unchanged at 0.10% BoE will maintain its asset purchasing target at £875B The vote to keep policy unchanged passed with a 7-2 vote The minutes of the MPC meeting […]
9/23/2021 The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session. Our outlook Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because […]
9/21/2021 Bitcoin Update For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good […]