The latest CPI report showed a year-over-year increase of 8.6%, which is the highest level we’ve seen since 1981. The CPI is also higher than expected on a monthly basis, up about 1%…
As I mentioned on Thursday, the DIA, which tracks 30 large-cap Dow stocks, has been trading in the same range for quite awhile now.
Well, it has since broken down…
The DIA has now hit a multi-day low. But the good news is that if this is just a little shakeout, we’ll know about it soon because the DIA will either gain composure, or it’ll continue trading lower and head toward the bottom.
The DIA, which tracks 30 large-cap Dow stocks, has been trading in the same range for eight days now. This has created a lot of choppiness, which is one of the worst things that could happen because we need some type of directional bias from the market.
However, it’s also pushing volatility via the VIX, or fear gauge, a little bit lower…
This is creating a nice base. So if you look at the IWM, an ETF that tracks small-cap stocks, you’ll notice that it’s starting to break out. I like the IWM right now and the longer it stays at these levels, the better chance we’ll be able to build a nice foundation.
Technical Indicators are mathematical calculations based on the price, volume or open interest of a security or contract. By analyzing historical data, technical analysts use indicators to predict future price movements. Examples of common technical indicators include Relative Strength Index, Money Flow Index, Stochastics, MACD and Bollinger Bands.
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We just got the largest year-over-year increase in inflation we’ve seen in over 40 years, despite being told last year inflation has peaked! And Jeff Zananiri has some words.
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