Stocks Await Inflation Data

12 Jul 2022

Stocks retraced as anticipate yesterday. We fell exactly to the intermediary level of support we suggested yesterday, at 3825. The Kovach OBV has topped and rounded off, suggesting the weak momentum we saw last week has dissipated for now. We won't expect to see any significant moves, as the markets are anticipating CPI data tomorrow. With all eyes being on inflation and the print expected to potentially read in the double digits as per the last reading and in Europe, this could spell another hit for stocks tomorrow. If we are able to rally, then 3937 is a likely ceiling. If we selloff further, then 3737 should be considered a floor.