Good morning. I have been doing a lot of research on the CPI and I believe we will see it move higher next month. The fact is Core inflation which is the number the Fed is really concerned with was up last month but unles you read it yourself or listen to people such as my self that actually live in reality on Wall Street. The other important thinhg to remember is that fules prices went up becuse the Biden administration released a ton of gas from the Emergency Strategic Patroleum reserve, and he did it, right before the midterm elections so this was a real temporary deflationary measure only done for political purposes. The news is that we are starting to see inflation ging back up. The other thing you must kniw is the Fed is very concerned about wage inflation and that continues to go higher. We have an extremly tight labor market. The fed will bnot picvot and they will go m,uch hifgher for longer.,
Yesterday in the stock market we saw a very strong rejection from the very crtical bear market resistance. The question going forward ishow much lower are we going from here. SPY wa. The market could trade between s down 1.58% after we did hit that very critical bear market resistance $400. We did get a very bearish candle yesterday. My suggestion going forward since we did get rejected from critical bear market resistance is to wait until SPY breaks 400 to short more. Agressive traders can definetly short here but if you wnt to be sure, I suggest waiting, it wont be long.you can still trade the range between $390 and $400 by shorting at resistance and covering ands going long at support. If we break down below $39 you can becaome alot more bearish.
QQQ: The triple QQQ’s were down 1.3% and the q’s were way overbought trading outside of the upper bollinger bands.
Wihe the Q’s pulling back from resistance, The bulls have support at $276 and $278 and if we break that we are very
likelly to fill the gap at $273,
The Dow was down 1.83% yeateday and closed above the 20 Day moving average.. We have critical support $332 tehan $324.
The Vix was up .98% yesterday and we closed above $20 for two days in a row. If we stay above Vix 20 stay cautious becuse we
will have a very volatle market.
NVDA was down 3.52 % continuing the rejection from extremly overbought conditions. There is a gap above bel;ow $173. Bulls have critical support is $166 if we break support we could come doen to $156 with a gap to fill at $150 there is critical resitance at $179.
G. Allan Colins