The Bottom Line:
- Bullish reaction to CPI data, with CPI at 3.3% vs. expected 3.4%.
- FOMC meeting results in no change to the 5.5% interest rate.
- Significant new all-time highs for NASDAQ and ES on CPI reaction.
- Dow closes in red due to notable sector weaknesses.
- Bitcoin and Ethereum face pullbacks, while ARM and Nvidia show strong bullish moves.
Bullish Response to Favorable CPI Data
Bullish Market Movement on CPI Data Release
On ES, we witnessed a positive response to the CPI data, leading to a spike in prices. While the FOMC outcomes were as expected with no rate change, economic projections from Japal added some volatility. Noteworthy sectors like healthcare, consumer discretionary, and energy showed resilience despite some red figures outside of tech stocks.
All-Time Highs Across Major Indices
The NASDAQ hit a new all-time high after a strong CPI response, with opportunities for hourly higher lows on pullbacks. The RTY displayed solid gains but is pulling back more than desired, indicating potential lower highs. Conversely, the Dow remained bearish, breaking the low of the morning’s CPI reaction and closing in the red.
Divergent Performances in Different Asset Classes
In cryptocurrency markets, Bitcoin faced resistance at $6954, experiencing profit-taking and signaling risk-off sentiment. Ethereum also saw significant pullbacks. Traditional assets like the dollar showed mixed signals with a broadening formation, while gold experienced notable volatility with a pullback expected for lower highs. Oil trended downward after inventory data, possibly setting a daily lower high, contrasting with ARM’s bullish run with limited shares circulation.
FOMC Holds Steady at 5.5% Interest Rate
On ES, we witnessed a positive response to the CPI data, leading to a spike in prices. While the FOMC outcomes were as expected with no rate change, economic projections from Japal added some volatility. Noteworthy sectors like healthcare, consumer discretionary, and energy showed resilience despite some red figures outside of tech stocks.
The NASDAQ hit a new all-time high after a strong CPI response, with opportunities for hourly higher lows on pullbacks. The RTY displayed solid gains but is pulling back more than desired, indicating potential lower highs. Conversely, the Dow remained bearish, breaking the low of the morning’s CPI reaction and closing in the red.
In cryptocurrency markets, Bitcoin faced resistance at $6954, experiencing profit-taking and signaling risk-off sentiment. Ethereum also saw significant pullbacks. Traditional assets like the dollar showed mixed signals with a broadening formation, while gold experienced notable volatility with a pullback expected for lower highs. Oil trended downward after inventory data, possibly setting a daily lower high, contrasting with ARM’s bullish run with limited shares circulation.
Record Highs for NASDAQ and ES Amid Market Optimism
On ES, we witnessed a positive response to the CPI data, leading to a spike in prices. While the FOMC outcomes were as expected with no rate change, economic projections from Japal added some volatility. Noteworthy sectors like healthcare, consumer discretionary, and energy showed resilience despite some red figures outside of tech stocks.
The NASDAQ hit a new all-time high after a strong CPI response, with opportunities for hourly higher lows on pullbacks. The RTY displayed solid gains but is pulling back more than desired, indicating potential lower highs. Conversely, the Dow remained bearish, breaking the low of the morning’s CPI reaction and closing in the red.
In cryptocurrency markets, Bitcoin faced resistance at $6954, experiencing profit-taking and signaling risk-off sentiment. Ethereum also saw significant pullbacks. Traditional assets like the dollar showed mixed signals with a broadening formation, while gold experienced notable volatility with a pullback expected for lower highs. Oil trended downward after inventory data, possibly setting a daily lower high, contrasting with ARM’s bullish run with limited shares circulation.
Dow Jones Decline Linked to Sector Weaknesses
Dow Jones Decline Linked to Sector Weaknesses
The Dow displayed a bearish trend as it broke the low of the morning’s CPI reaction and closed the day in the red. Sectors such as healthcare, consumer discretionary, and energy showed weakness, contributing to the Dow’s overall decline.
Rotation in Market Performances
Notable rotation occurred in the market with some sectors experiencing gains while others faced losses. This diversification is healthy for the market, preventing simultaneous exhaustion and creating opportunities for different sectors to perform well at different times.
Impact on Cryptocurrency Markets
In the cryptocurrency realm, Bitcoin encountered resistance at $6954, prompting profit-taking activities. Ethereum also underwent significant pullbacks, reflecting a risk-off sentiment among investors. The market dynamics suggest a cautious approach towards crypto assets amidst uncertainty.
Cryptocurrency Pullbacks and Tech Stock Surges
On ES, we witnessed a positive response to the CPI data, leading to a spike in prices. While the FOMC outcomes were as expected with no rate change, economic projections from Japal added some volatility. Noteworthy sectors like healthcare, consumer discretionary, and energy showed resilience despite some red figures outside of tech stocks.
The NASDAQ hit a new all-time high after a strong CPI response, with opportunities for hourly higher lows on pullbacks. The RTY displayed solid gains but is pulling back more than desired, indicating potential lower highs. Conversely, the Dow remained bearish, breaking the low of the morning’s CPI reaction and closing in the red.
In cryptocurrency markets, Bitcoin faced resistance at $6954, experiencing profit-taking and signaling risk-off sentiment. Ethereum also saw significant pullbacks. Traditional assets like the dollar showed mixed signals with a broadening formation, while gold experienced notable volatility with a pullback expected for lower highs. Oil trended downward after inventory data, possibly setting a daily lower high, contrasting with ARM’s bullish run with limited shares circulation.
