This morning we received some pretty good inflation data. There’s still more data that will be released tomorrow morning.
The stock market is having a bullish reaction to today’s PPI data. There is a bullish daily gap higher for the NASDAQ and S&P. More inflation data will be released tomorrow, but today’s strong inflation data is a positive sign so far. The NASDAQ continues to lead the stock market moves with the S&P lagging behind. QQQ is approaching a red resistance line around $460.50 and is likely to have some type of pullback there.
SPY is really lagging behind, and is likely to form a correction without reaching the red resistance line around $545. The correction is likely to start when QQQ reaches the red trendline around $460.
SPY and QQQ never had a correction, QQQ is above the $460 resistance target. This makes me nervous for a selloff tomorrow. Either a selloff or the market is very excited for rate cuts. I think the last time we pumped ahead of the inflation data announcement and then sold off after strong inflation data was released. We could see a similar trend here. We’ll see how things are looking tomorrow morning.
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