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Breakout continuation

S&P 500 had good reason to rally after CPI Wednesday, but didn‘t keep the gains. Thursday‘s PPI brought arguably less satisfactory macro data, yet stocks rallied strongly – S&P 500 offered a deep hourly pullback candle two hours after the breakoit vs. a much shallower pullback candle in Nasdaq.

Friday though, the relative performance reversed, and tech attempt to continue higher was rejected, and tech underperformance followed, undershooting its Thursday pullback lows unlike the S&P 500.

Is that a cause for concern alongside DRAM and SMH being in less technically favorable position than IGV, which though suffered a chunky red candle Friday?

Another little oddity was the dollar daily weakness while yields rose – or was that tied perceived rising Mideast tensions, therefore just hedging before the weekend?

Where was the gold and silver upswing then? Only gold moved clearly higher, silver barely so – and incoming retail sales were a disappointment, pushing rate hike odds further to the background – any news dialing back rate hike odds that simultaneously doesn‘t smack of corporate profits erosion, is a welcome sign that should have made stocks rally instead, so let‘s dive into the subject of budding stock market upleg, whether that‘s cancelled or deferred.

Author

Monica Kingsley

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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