Today’s US CPI numbers came in at the hottest level in 40 years! Year-over-year inflation is a staggering 9.1%.
Markets reacted negatively at first. However, many bounced back to breakeven or even turned positive on the day.
Today, I discuss what needs to happen next if markets intend to rally following today’s CPI, and also the levels I’m targeting if today’s bounce fails.
Updates include the S&P 500, TOTAL, BTC, ETH, and ADA.
S&P 500 (SPX500)
The S&P 500 sold off immediately after today’s CPI numbers, which came in at the hottest in 40 years!
However, as we know, the first move is often a fakeout, and today’s selloff was no different.
That said, the S&P is still holding below resistance between 3,840 and 3,900. It has to close above that area to flip it to support.
Until then, I’ll remain skeptical of today’s bounces across the crypto market.
A reclaim of 3,900 would expose 4,190, while a push below today’s low at 3,750 would open up the next support at 3,640.
Total Crypto Market Cap (TOTAL)
TOTAL is still holding below resistance at $875B. That’s the level it needs to reclaim on a 4-hour basis to turn higher toward $892B and $960B.
Key support for TOTAL is the $830B level I’ve mentioned. You can see where the market bounced from that level today.
A lot of indecision right now from TOTAL and other markets, so unless you’re in a position it might be best to do nothing for now and wait for confirmation.
Bitcoin managed to hold above channel support today at $19,270. That’s the area I’ve mentioned for the last couple of weeks.
As long as that area holds on a 4-hour basis, there’s a chance we get a relief rally from cryptos.
However, BTC will have to take out $20,375 to open up higher levels, including $21,100 and the April trend line at $22,000.
For now, BTC looks pretty indecisive so taking on any new positions right now is ill-advised, in my opinion.
ETH has some really interesting technicals at the moment. On the one hand, it’s holding below the June trend line at $1,100, and on the other, it’s trading above the July descending channel.
If ETH is going to push higher, buyers need to take out the June trend line just above $1,100. That would open up $1,160 and potentially $1,275.
Alternatively, a close below $1,065 or so would likely introduce some weakness with support below that coming in at $1,000.
I do expect lower lows in the next few months, but I’m certainly not ruling out the potential for some relief before then.
ADA is one of the more bearish-looking charts. The market closed below a significant level on Tuesday at $0.44. You can see how that level served as resistance today.
There is some support at around $0.38. However, unless ADA is able to bounce from there and reclaim $0.44, we could see this market begin a significant leg lower.
I’m still short here as mentioned in the Discord server this week, but I did take some profit today. I can’t recommend shorting ADA here given that support isn’t too far away and some markets do look somewhat bullish.