One would expect the market to crash after the CPI data and strong retail sales reports. But it wasn’t the case. In fact, after some weakness, the markets rallied and closed up over 0.4%. This indicates that bears have it wrong and that the market is likely going higher than lower from here. It may be a bumpy road, but it will be an upward road.
The daily Ichimoku trend is strong and today’s pause is a dip worth buying. And wait for the bears when they realize that they were wrong and start rushing in with FOMO. That will push this market even higher.
The weekly Ichimoku is still weak but improving too. If this continues, we will see a full-blown bull market on both charts.
Tomorrow we will get jobless claims data and the PPI index (Producer prices index) which may have some impact on the market. But since the market was able to shrug off strong labor data and mild inflation decrease data (which would be otherwise perceived as the end of the world) I would say that unless the jobless claims or PPI come back really, really bad, nothing will happen and the market will go higher than lower.
The forecast indicates a selloff tomorrow but I do not think this will happen. I expect an up day.
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