The CPI inflation data report showed inflation continued to ease in November.
- +0.1% month over month
- +7.1% year over year
Look at the chart. The trend is obvious…
The market initially reacted with a massive +2-3% moves to the upside but slowly gave up most of those gains throughout the day.
Still, all four indexes finished with decent gains…
- Dow Jones +0.3%
- Nasdaq +1.0%
- S&P 500 +0.7%
- Russell 2000 +0.8%
Sector Round Up
9 of 11 sectors ended the day higher.
At the top…
- Real Estate (XLRE) +2.2%
- Energy (XLE) +1.9%
- Communication (XLC) +1.7%
At the bottom…
- Consumer Staples (XLP) -0.1%
- Consumer Discretionary (XLY) +0.0%
Vaccine maker Moderna (MRNA) rose 20%, adding more than $12 to its market cap.
- Its cancer vaccine is showing promising results in mid-stage trials
- Merck (MRK), which is working on the vaccine too, rose less than 2% on the news.
Social media company Pinterest (PINS) added nearly $2 billion in market cap when it surged 12% yesterday.
- One analyst upgraded the stock, citing “multiple tailwinds” for the company.
- The analyst suggested a stock “buyback” could be coming
- Cash reserves are healthy, about $2.7 billion, and rising
- The price target given is $30, up from $25 … It closed at $26.42
Bitcoin^ got in on the broader market rally, rising about 5% in the past 24 hours. The original cryptocurrency is trading at its highest level in over a month. Despite headwinds…
- DOJ considering criminal charges against Binance leadership
- $3 billion in withdraws from Binance in a 24-hour period
- Crypto-friendly bank Silvergate Capital (SI) fell 12% after the FTX congressional hearing
- SI is trading down 92% from all-time highs last November
The VIX rejected the elevated levels it achieved on Monday as soon as headline inflation showed cooling.
The market is showing little fear ahead of the Fed decision later this afternoon.
- RSI levels are all neutral
- The Put-to-Call Ratio is neutral
At 2 pm today, The Fed will announce its latest interest rate. A 0.5% increase is expected. A smaller hike would be extremely bullish.
Fed Chair Powell speaks at 2:30.
Watch the market’s reaction, not the speech.
The market loves Powell.
*CJJD on watch
*USEA support at $4
*BIVI support at $8
*SISI resistance at $2
*CLRO resistance at $1.70
*BBW resistance at $26
*ACER on watch
BAND support at $24
SMMT resistance at $4
PBYI support at $4.60, resistance at $5
FLNC support at $20
ACLX on watch
REPL on watch
PHR on watch
RCUS support at $30
RYTM support at $29
^CROX support at $95
^RYAM support at $8.50
^PRQR support at $1.50
TOUR support at $1.5
Secondary watchlist, float over 100 million
YEXT support at $6
MOMO resistance at $9
PBI support at $4.25
MLCO resistance at $12
WDH support at $2.10
MRNA resistance at $200
RLX support at $2.50
PINS support at $26
TME on watch