2/10/22 Gap to Fill, Inflation Data INbound

News:

Markets gapped higher yesterday and held those gains all day.

The Dow Jones, represented by the chart below, shows a near-perfect “spinning top” and a gap to fill underneath it.

DIA 1-day candles – via Thinkorswim

Gaps like this typically get filled the next day or become strong support. So once again I’m waiting to see how today goes.

I’m also keeping a close eye on Bitcoin. It still looks strong as it nears the 200-day and 50-day moving averages.

Technicals:

Indicators are neutral ahead of today’s inflation data announcement…

Timing:

CPI inflation data is due out at 8:30 A.M. You can find it here: https://www.bls.gov/

Expect high year-over-year inflation and lots of headlines point out that figure. But the market already knows inflation is high…

The market will watch the month-over-month. If this figure is under 0.5% the markets should be happy.

Futures are jumpy this morning. I’m still on the sidelines.

Watchlist:

*Low Float

*CORZ has resistance at $11
*CPSS has support at $12.65
*SLGY has support at $6
ALJJ has support at $2.30
SBEV has resistance at $5
VIVO is on watch
CENX has support at $18
THC has resistance at $83
PFGC has support at $50
DCFC is on watch
OMC is on watch

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