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- Inflation Shows Cooling As Markets Reach More All Time Highs
Inflation Shows Cooling As Markets Reach More All Time Highs
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Happy Sunday and Happy Fathers Day. The market is continuing to look strong, lets dive into it below.
MARKET RECAP
Inflation Shows Cooling As Markets Reach More All Time Highs
SPY Daily Chart
The market continued to climb to reach more all time highs nearly every day this week, holding well above all of the key moving averages. This week was a busy one, with the May inflation report and the latest Fed meeting.
The consumer and Fed saw some promising signs when the May CPI Report came in at 0.2% for the month and 3.3% year-over-year, which was lower than expected. Later that day the Fed kept interest rates the same, which was expected. They also signaled that only one rate cut is expected before the end of the year, although it is uncertain when that cut will be.
Apple was one of the biggest talks of the week, surging 8% on the week and reclaiming its position as the worlds most valuable company. The stock rose as investors liked what Apple had to say about its AI announcements at this years WWDC event. Read up on all they had to say here.
Overall, the stock market has been looking strong. However, the SPY is reaching overbought levels on the RSI (Relative Strength Index). This index is a metric that measures the speed of price movements, which can help identify if assets are oversold or undersold. The index sits at 72.92, where typically anything over 70 is considered overbought.
SPY Relative Strength Index
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TRENDWATCH
Amazon is Looking to Break a Flat Trend
Amazons 8 ema, 21 ema, and 50 ma are all bunched together at the moment. I am keeping my eye here to see which way it will break from the 50 moving average.
Last Weeks Trend: UBER
Last week I pointed out UBER as my trend watch to see if it could break through the 50 ma. It ended up moving upwards this week and sits above all moving averages. The 8 ema crossed the 50 ma and the 21 ema also looks to cross within the next few sessions.
In the News
💊 FDA votes to recommend the approval of Eli Lilly’s Alzheimer’s drug.
🖼️ Adobe surges after earnings report.