Resistance is persistent while the NYSE and major US Indices trade at or near all-time highs. Breadth is improving on the whole, as the broad market NYSE McClellan Oscillator remains in a bullish trend. In addition, the recent rotation into small cap stocks suggest an eventual break to new highs.
Summary
“Inflation should fade into 2022 and 2023” – ECB Lagarde
Short-term, CPI data came out this morning, showing consumer prices are rising as the economy reopens. The CPI report was expected to show prices rose another 0.4% in May, pushing annual inflation above April’s 4.2%, already the highest in more than a decade. Futures are responding by moving higher going into the opening bell.
Tick cumulative turned late on Wednesday, indicating a “short-tern” possibility of weaker price action.
Watch for a higher low Thursday or Friday, then a higher high to confirm the short-term trend is intact.
The McClellan Oscillator – NYMO
Intermediate and long-term trends are intact. In addition, more stocks are participating, as breadth shows more stocks are moving in unison. The equity market is bullish as we can see highlighted by a rising or bullish trend in NYMO. The McClellan oscillator suggests underlying strength.
New Highs – NYHL
New highs are persistent as well, with the histogram remaining above the zero line. The moving average, black line, is printing higher highs and higher lows.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Considering joining us as a member? Check details here
