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Big Market Sell- Off After the Worse Than Expected CPI Data Releases
There was a broad market sell-off after economic data related to inflation was released. This CPI report was a lot worse than expected. And it shows that, in the eyes of the consumer, inflation is high. This is bad for markets. It is still a lower CPI reading than last month which is good. But the market reacted very bearishly.
You can see in the picture below how the price began to sell off near a short-term resistance level. And the price came all the way down to the nearest short-term support level. As a technical trader this was the perfect setup for a quick day trade. But now the price is resting just above a long-term upward trending support. Which direction will the market go next?
I also want to point out that even if you were not following the economic data but you were still following the short-term trends and technical patterns then you still would have been able to find a good short opportunity today. You can see the upward trending price channel on the 1-hour candles directly below. As soon as the CPI data report was released the price of the S&P 500 rejected the local resistance level and broke down below the support of this 1-hour price channel. And the price continued to fall making any short trade very profitable today.
In the chart directly below I have highlighted the nearest two majors support levels to watch out for. These are the levels I believe there might be buyers to provide some demand. Of course that depends if the price continues to fall From the upward trading support level that the price is near. I have highlighted the upward trending support by the purple line.
I was assuming the long-term price action of S&P 500 would look like the chart below. But after a very bearish day like today I am questioning if the price action will stay within this long-term wedge formation. It could possibly depend on the inflation data releasing tomorrow morning at 6:30 Eastern US time zone. After today's big move following the inflation data was released I believe tomorrow's price action will be greatly dependent on the economic data that will come out before the market opens.
$Invesco QQQ Trust (QQQ.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$ $SPDR S&P 500 ETF (SPY.US)$ $iShares Russell 2000 ETF (IWM.US)$ $VIX Index Futures(APR5) (VXmain.US)$ $Gold Futures(APR5) (GCmain.US)$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf (UUP.US)$ $SPDR Gold ETF (GLD.US)$ $iShares Silver Trust (SLV.US)$ $Ishares Iboxx $ High Yield Corporate Bond Etf (HYG.US)$ $Ishares Iboxx $ Investment Grade Corporate Bond Etf (LQD.US)$ $iShares 20+ Year Treasury Bond ETF (TLT.US)$ $Crude Oil Futures(APR5) (CLmain.US)$
$TENCENT (00700.HK)$ $SSE Composite Index (000001.SH)$ $CSI 300 Index (000300.SH)$ $CSI 300 Index (000300.SH)$ $FTSE Singapore Straits Time Index (.STI.SG)$ $NIO-SW (09866.HK)$ $NIO Inc. USD OV (NIO.SG)$ $NIO Inc (NIO.US)$ $BILIBILI-W (09626.HK)$ $Bilibili (BILI.US)$ $Baidu (BIDU.US)$ $BIDU-SW (09888.HK)$ $XPeng (XPEV.US)$ $Li Auto (LI.US)$ $BYD COMPANY (01211.HK)$ $BYD Company Limited (002594.SZ)$
$TENCENT (00700.HK)$ $SSE Composite Index (000001.SH)$ $CSI 300 Index (000300.SH)$ $CSI 300 Index (000300.SH)$ $FTSE Singapore Straits Time Index (.STI.SG)$ $NIO-SW (09866.HK)$ $NIO Inc. USD OV (NIO.SG)$ $NIO Inc (NIO.US)$ $BILIBILI-W (09626.HK)$ $Bilibili (BILI.US)$ $Baidu (BIDU.US)$ $BIDU-SW (09888.HK)$ $XPeng (XPEV.US)$ $Li Auto (LI.US)$ $BYD COMPANY (01211.HK)$ $BYD Company Limited (002594.SZ)$
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Mike Obama : too much huat. laolao
SpyderCall OP Mike Obama : LOL!!! who the heck is this guy.... is this mr. t? I still cant stop laughing at this stuff
Mike Obama :
SpyderCall OP Mike Obama : holy F#*k LOLZ!
WallStreetYoda :
BeBlessed : Bro Spyder, do you know what time does all the options, fx and dj future contracts expire tonight? today is quad witching day
SpyderCall OP BeBlessed : Im not sure if it is a quadruple witching, or a triple witching or a double. but on witching days the market re-balancing will take place all day. and sometimes all week in the quad witching days at the end of the first half and the end of the second half. But at the end of intraday trading is when all of the contracts that expire that day will close or execute.
SpyderCall OP BeBlessed : good call out on the witching day though. I didnt even realize that yet. Thanks
BeBlessed SpyderCall OP : Glad to be able to share something useful with you. Often you're the one that shared insightful advice to me.
Today is quadruple.
SpyderCall OP BeBlessed : we might see some big moves if it is quadruple.
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