Stocks Edge Higher Ahead of CPI Data
Updated
Stocks have edged higher, breaking through to our next target of 4122, exactly as we predicted yesterday. Stocks are up ahead of key US inflation data, expected to come in at 8.0%, which is still high, but hopefully at least plateauing. It looks like we are meeting some resistance as confirmed by red triangles accumulating on the KRI. The Kovach OBV is still strong but may be rounding off slightly. While we may be in for a retracement, if momentum can sustain, then 4144 or 4178 are reasonable targets. If we reject current levels watch 4068 for support.
Note
Inflation came out way hotter than expected, and stocks tumbled. The hotter than expected reading dampened hopes that the Fed might take a dovish turn after the rate hike this month, now increasingly more certain to be 75bps.
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