Dax, Dow and Nasdaq 100 in strong form ahead of US inflation
Indices have made fresh headway this morning, though this afternoon’s US CPI print could result in some volatility.
Dax maintains upward move
The Dax continued to push higher on Wednesday, helping to shrug off Tuesday’s indecisive session, though a fresh push to the previous highs still eludes it.
However, further short-term gains above 16,800 will reinforce the short-term bullish view and see the 17,000 area tested once again. Above this the index will sit at new record highs.
A reversal back below 16,500 is needed to indicate that a deeper pullback is in play.
Dow continues to climb
A further strong day on Wednesday built on Monday’s rally, and now the Dow seems set to target new all-time highs.
The risk, however, is that the US inflation report this afternoon is stronger than expected. Given the scale of the gains made since October, the index remains vulnerable to a medium-term pullback. Indeed, one might be viewed as healthy, providing some corrective action to an index that has barely stopped moving higher since the beginning of November.
A reversal back below 37,200 would likely mark the catalyst for additional short-term downside.
Nasdaq 100 rising ahead of inflation data
Nasdaq 100 finds itself on its way to the 17,000 level again, unless a bearish reaction to this afternoon’s consumer price index (CPI) comes into play.
Above 17,000 will see the index back at record highs. Bullish momentum has reasserted itself this week, bringing an end to the early January pullback.
A reversal and close back below 16,100 would be needed to revive the short-term bearish view.
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