Markets Attempting to Look Past Inflation After the rather concerning admission from the Fed that they underestimated how hot the inflation could be running – albeit Powell’s attempt to paint it as still of not much concern – markets are mixed with Dow showing weakness while Nasdaq lifting up, with S&P 500 seemingly still trying (more…)

Markets in the Fed-wait Mode After posting yet another record high, the S&P 500 index is taking a breather, waiting (hoping?) for the Fed to throw something tomorrow to put some fire under it. Lack of that fire could slowly melt the index down. We might know tomorrow by 2:30/2:45pm which way it will play (more…)

The “Record-High-Inflation and Record-High-Stocks” Goldilocks Scenario to Continue Forever? After struggling for eight days in a row, the index recorded yet another record high intra-day yesterday, but the follow through was disappointing. The high read on the inflation data could be keeping a lid on the gains for sometime, unless and until the inflation is (more…)

Struggling to Scale New Highs For the seventh trading day in a row, the S&P 500 index has been struggling to record a new high. A daily close above 4245 can unleash a fresh wave of buying, but it still remains an elusive target for the bulls. For positional trading: Our models indicate a long (more…)

Models Flashing Caution Signal On our trading plans for Tue, 06/01, we wrote: “A failure to sustain that (new peak) could mark the high for the index for some time to come”. The index not only failed to make a new high on the flows of the first-of-the-month, but the price action lead our models (more…)

Next Peak on First-of-the-month? Our regular readers are familiar with the first-of-the-month hypothesis we publish here. It is that time of the month, again…our models indicate a potential to register a new high on the index today. A failure to sustain that could mark the high for the index for some time to come. For (more…)