Grinding Higher, Waiting on Data
Markets hold their ground ahead of key inflation numbers. Indices stay strong, dips get bought, and traders stay alert.
The Markets
Markets continue grinding higher with SPY and QQQ nearing their highs, IWM approaching its 200-day MA, and DIA breaking above a key pivot level.
Each news dip is bought quickly. And sector rotation remains healthy.
What effect will inflation data have?
CPI comes out tomorrow morning, and PPI the following day.
Let’s go to the charts.
The Charts
SPY has been riding its 8-day MA higher since recovering the May 23 dip. Prices are not extended, and neither is the RSI. Potential support levels are stacking up below with;
🟡 The 8-day MA, as mentioned above
⚫️ A pivot level at $595.54
🟠 The May 23 dip AVWAP
🔵 And the 21-day MA
QQQ follows the same playbook with the 8 and 21-day MAs and the AVWAP from the same dip showing the closest potential support.
IWM is a whisper from its 200-day MA, which has been mostly flat for …. (checks calendar) …. eternity? No, just for all of this year so far.
~$207 - $210 is the lower level to watch with several potential support factors coming in that range.
DIA is over the pivot and looking for more upside. You know the drill by now — most of the key moving averages are clumped together just under the price.
BTCUSD is near highs after its quick trip to the 50-day MA. Can inflation data send it over the $112,000 mark?
TLT — Bonds are beaten, but still in the fight. Now they’re trying to hold it together above the 8 and 21-day MAs. Can they find the strength to move toward $87 and the 50-day MA?
VIX — Slowly sinking volatility is not hurting stocks ‘melt-up’ move.
The Trade
The trend remains constructive across the board, with most major indices holding above key levels and momentum building. Until that changes, it makes sense to stay with what’s working—focus on strength, respect your levels, and be ready to adapt if the tone shifts after this week’s inflation data.
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The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
