Markets rallied this morning on the back of lower-than-forecast PPI numbers. Those numbers helped to support the CPI figures we saw on Wednesday.
Overall, it was a somewhat bullish outcome for markets. However, we’ve yet to see crypto follow through to the upside.
In today’s video, I discuss what Bitcoin and others need to do to break out and take advantage of the bullish momentum we’ve seen lately from stocks.
Updates include the S&P 500, BTC, ETH, SOL, and SAND.
S&P 500 (SPX500)
The S&P 500 was mixed today. We saw a decent rally in the morning. However, it faded as the day went on.
What’s going to be key is to see the S&P stay above 4,200 on a daily closing basis. If we see that fail and especially 4,140, then I think things could get dicey again.
Below that would be the top of the channel near 4,100 and 4,000.
Alternatively, if the S&P can hold above this 4,200 support area, the next stop could be 4,300 to 4,350.
Bitcoin is struggling to close above the $24,200 area that I’ve mentioned over the past couple of weeks.
It’s going to take a daily close above that to flip it to support and expose the $25,400 area.
Alternatively, a close below $24,200 would keep it intact as resistance. Furthermore, a close above and then back below the level would result in a fakeout.
ETH is struggling a bit today at the $1,900 area. That’s not a surprise given that we knew sellers were likely to defend that level.
Any pullback from Ethereum needs to stay above $1,780 on a daily closing basis for the market to remain constructive. Anything below that and we could see a larger retracement begin.
If ETH can get above $1,910 on a daily closing basis, the next stop would be $2,150.
SOL is one to watch. There’s a decently large triangle that’s developed due to the descending trend line from late last year and the ascending line from the June low.
I’d expect the upcoming breakout to be quite volatile given that the market has been coiling for nearly two months.
Downside targets include $32 and $26, while upside targets are $47.50, $53, and $60.
The $40 area is a must-hold level for SOL.
SAND is still consolidating inside of the pattern I mentioned a week ago. However, the market is running out of room and will be forced to make a decision in the next few days.
A break higher would open up the $1.50 area, while a break lower would target levels like $1.30 or even $1.
Just be careful if we do get a break higher as the trend line from November at $1.50 is likely to attract a ton of sellers.