PPI came in lower than expected only showing a rise of .1% versus the estimated .2%. Some expectations were for a negative print, but PPI follows CPI with a better than expected number. This shows another cooling, which has traders yet again hoping for the Fed to not do any rate hikes the rest of the year. However, the jobs number comes in contradictory again, showing a lower than expected jobless number, coming in at 237k. This jobs number doesn't make sense as we have seen a growth in unemployment numbers. Especially when you factor in the real unemployment number ( which I covered earlier). This jobs number could keep the Fed on target with two more rate hikes with inflation still way above their target and a strong labor market (according to the recent data).
The market is up in pre-market off the data, but how long can we stay at current price levels, with resistance pressuring the 52 week highs in tech . Big earnings next week could put more things in perspective and a strong support could start to form in the supply zone. Keep eyes out for next week and a possible drop intraday in the market as steam runs out.
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