Late Night Commentary, Rally Out Of Steam?
It is 11:06 PM and I just walked in the door without dinner in my stomach. Thus, tonight I am sacrificing a full Nightly Stock Picks post in exchange for a quick post and food.
Getting straight to the point, I think this rally may be out of steam. The market direction tomorrow will be determined by the CPI report which comes at 8:30 AM. Recently these economic reports haven’t been too positive, so I am assuming tomorrow will be another volatile day.
Tonight I leave you with some technical analysis of the NASDAQ Composite. Let’s take a look here,
All of the above suggests that the only way we see the market break towards 2300 tomorrow is if the CPI somehow someway surprises investors with positive numbers.
The NASDAQ Composite has been making consistent lower highs, and that downtrending 50 day moving average is just ugly looking. Top that off with consistent bearish turn arounds with the RSI trending towards a 50 reading and things look bitter.
On the bullish side of the table we do have two distinct accumulation days out of the last three, and the MACD trend suggests momentum is swinging back to the bulls.
Will we finally make higher highs, or is this rally out of steam? No one knows, but I am ready to find out… after eating dinner of course 
. See you tomorrow.
