The SPY gapped down on a hot CPI print. I don’t know if he will get his way but Waller at the fed wants a double hike now with this number. We have recovered the gap down for now but we’re stuck under this ema and the 21 is sloping down overhead. This isn’t a good setup still and the issue remains mostly in tech stocks.
The QQQ, below, is building now under the 200 day going for its fourth close in a row there. Perfect rejections the last 2 sessions, bulls would like to see a close back over that and then we can start discussing reclaiming the 21 and maybe filling that gap up near 720. NVDA continues to be a big drag on this at a nearly 8% weight. High beta stocks do not like the higher rates and after today’s CPI print you can bet they’re going higher.
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Here are today’s large cap momentum scans from the database, you’ll note that there are no tech names in here and quite a few large cap defensive names. That isn’t a great sign when those are the charts showing momentum.
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