VOT Research Desk
The equity markets are cautiously anticipating a dovish CPI. This author feels that the positioning and attitude are unduly upbeat.
We had a significant equities rise before to the important data that eventually came to an end on Wednesday.
It’s hardly shocking because money left the table before the data was released. Equities markets shrugged after a really subpar US 10-year Treasury auction overnight.
Unexpectedly higher yields resulted, and the demand for the debt decreased. That would typically indicate that greater rates are required to draw investors to the sector. The impending CPI will also have reduced some people’s appetites.
Wedbush analyst Dan Ives lowers his price target for Tesla (TSLA), and we’re still concerned about China and how it may affect Apple (AAPL). The US elections appear to be in favors.
S&P 500 Technical Analysis
Major pivot point is still 3,806. We will depart from this with today’s CPI, which should then be extended by CTA and trend-following algorithms.
The market seems to be primed for a surge. I believe this lowers the risk-reward bias. For some time, we have been waiting for inflation to slow down, but that has not happened yet.
I ‘m not sure whether we get a lower print when we include in increased oil costs and mortgage payments.
A jump to 3,806 will probably result in a swift break to 3,892. Upon failure, we immediately go toward 3,646.
