A frantic rush of economic data pushed the major U.S. equity averages lower on Wednesday. While the latest PPI report pointed to decline in inflation, retail sales and industrial production statistics raised concerns that the aggressive increase in interest rates has already begun to pinch the economy. Following a mixed performance the previous day, stocks lost ground throughout much of Wednesday's trading, dragged down by the latest round of economic news.
Significant profit-taking and a general unease about economic conditions likely played a role. As what we discussed on Tuesday, overall markets have already overbought and have been extended from its 8&21 EMAs, without further more significant positive news, this momentum is unable to sustained.
Chart: SPX 30 mins
From tech side of analysis, yesterday's sell off helped the market corrected back to its 8&21 EMA equilibrium area. However, the market is still a couple points away from 3900ish level. And yesterday's sell off also caused the market put a big selling off energy bar on the daily chart, which is scary and will make tech buyers kinda hard to get in. Therefore, if the market can find some support around 3900ish, and sideway for couple of days. That might be a good chance to buy it again.
Please feel free to express your ideas and thoughts in the comment section.
Significant profit-taking and a general unease about economic conditions likely played a role. As what we discussed on Tuesday, overall markets have already overbought and have been extended from its 8&21 EMAs, without further more significant positive news, this momentum is unable to sustained.
From tech side of analysis, yesterday's sell off helped the market corrected back to its 8&21 EMA equilibrium area. However, the market is still a couple points away from 3900ish level. And yesterday's sell off also caused the market put a big selling off energy bar on the daily chart, which is scary and will make tech buyers kinda hard to get in. Therefore, if the market can find some support around 3900ish, and sideway for couple of days. That might be a good chance to buy it again.
Please feel free to express your ideas and thoughts in the comment section.