News:
Markets surged higher when the latest inflation reading, the CPI, revealed inflation remains high. By the numbers…
- Month-over-month increase +0.4%
- Year-over-year increase +6.0%
Core inflation, which excludes energy and food, rose even more, +0.5% month over month.
Food prices increased more than any other major category.
Bouncing from oversold conditions, the markets surged higher. Major indexes jumped as much as 3% in early trading.
By the close, the indexes settle higher but below their daily highs…
- Dow Jones +1.1%
- Nasdaq +2.1%
- S&P 500 +1.6%
- Russell 2000 +1.9%
Sector Round Up
All 11 sectors ended Tuesday in the green.
At the top…
- Communications (XLC) +2.8%
- Technology (XLK) +2.3%
- Financials (XLF) +2.0%
At the bottom…
- Energy (XLE) +1.0%
- Consumer Staples (XLP) +1.0%
- Healthcare (XLV) +0.9%
Begging for Bitcoin
The price of a single Bitcoin^ surged to its highest level since June 2022.
This morning it’s holding near $25,000 per token. Despite the overhead resistance, the chart appears to be pointing higher.
We continue to accumulate Bitcoin weekly.
Technicals:
Volatility favors the bears.
The VIX surged above the critical level of 22.50 last week. On Tuesday, it bounced off of that level…
Our take … Yesterday’s surge was more about relieving oversold conditions than market optimism.
The bounce is known as a “dead cat bounce.” Others call it a bull trap. We believe the rally will be short-lived.
- RSI levels returned to neutral
- The Put-to-Call Ratio remains oversold
Our current outlook is bearish. We sold into yesterday’s rally.
Timing:
Another round of inflation data drops this morning.
At 8:30, the Producers Price Index (PPI) will be the main driver of volatility in the market.
Today is also a notable anniversary…
On this day in 1933, the S&P 500 gained 16.6%–Its largest single-day gain ever.
Watchlist:
*Low Float
^Open Position
*BLPH resistance at $7, support at $6
*AMAM support at $8
PTGX support at $24, resistance at $26
DKS support at $140
DTC on watch
SQSP support at $25
^INDI support at $10
IOT support at $18
RELY support at $15
ARDX support at $3.50
GOTU support at $4.50
BGCP support at $4.75