*Producer prices increase 0.2% in October
*PPI excluding food, energy, trade climbs 0.2%
*PPI rises 8.0% year-on-year; Core PPI up 5.4%
U.S. producer prices increased less than expected in October as services fell for the first time in nearly two years, offering more evidence that inflation was starting to subside, potentially allowing the Federal Reserve to slow its aggressive pace of interest rate hikes.
The report from the Labor Department on Tuesday also showed a decline in the cost of wholesale goods excluding food and energy, reflecting improved supply chains as well as slowing demand from higher borrowing costs. This supports economists' views that goods disinflation was underway.
Fueled by a pleasing October Producer Price Index (PPI), the major indices started the session with decent gains, also closed better than expected. But I am still holding my views, the correction will come, and maybe even worse than what I expected before.
Illustration 1.1
Illustration 1.1 is 15 mins chart for the past few trading days.
Pre-market opened up high and tried to test prior slopping 4040 resistance level failed and gave a 15 mins shooting star, and the whole trading day was a "gap filling" day. As what I marked on my chart, 8 & 21 Emas on the daily chart is 3881ish & 3827 ish, and its pretty clear to see that there's plenty of room to go. 3950ish might have some support there, so possibly market will moving side-way and wait for MAs catching up in next couple trading days.
Therefore, I am very cautious.
Please feel free to express your ideas and thoughts in the comment section.
*PPI excluding food, energy, trade climbs 0.2%
*PPI rises 8.0% year-on-year; Core PPI up 5.4%
U.S. producer prices increased less than expected in October as services fell for the first time in nearly two years, offering more evidence that inflation was starting to subside, potentially allowing the Federal Reserve to slow its aggressive pace of interest rate hikes.
The report from the Labor Department on Tuesday also showed a decline in the cost of wholesale goods excluding food and energy, reflecting improved supply chains as well as slowing demand from higher borrowing costs. This supports economists' views that goods disinflation was underway.
Fueled by a pleasing October Producer Price Index (PPI), the major indices started the session with decent gains, also closed better than expected. But I am still holding my views, the correction will come, and maybe even worse than what I expected before.
Illustration 1.1
Pre-market opened up high and tried to test prior slopping 4040 resistance level failed and gave a 15 mins shooting star, and the whole trading day was a "gap filling" day. As what I marked on my chart, 8 & 21 Emas on the daily chart is 3881ish & 3827 ish, and its pretty clear to see that there's plenty of room to go. 3950ish might have some support there, so possibly market will moving side-way and wait for MAs catching up in next couple trading days.
Therefore, I am very cautious.
Please feel free to express your ideas and thoughts in the comment section.