The Dow Ends 5 Days Streak

FUNDAMENTAL ANALYSIS
The Dow ends its 5 days winning streak under heavy profit taking as CPI numbers match analysis expectations. Even though CPI numbers matched analysis expectations, it is a rise nonetheless and left investors disappointed and wondering if inflation is truly under control. The Consumer Price Index (CPI) is a measure of the average level of prices of a fixed basket of goods and services purchased by consumers. The monthly reported changes in CPI are widely followed as an inflation indicator. Generally, a higher inflation figure offers support to the dollar as it suggests that US interest rates need to rise. That is what investors fear most now. However, we do see a bullish undercurrent as buyers stepped in during the last hour, lifting the Dow off its deep intraday low.

TECHNICAL ANALYSIS
The Dow ended in a huge hangman signal today. A hangman signal is a classical bearish signal that needs to be confirmed by a bearish followup. It is highly probable that this signal will turn the Dow down to the 30MA level as volume has been rising daily without any significant gain in the Dow, suggesting the presence of a resistance level. Certainly a tricky time to be trading.


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