CPI data cools in the US prompting stock market pull back
The ‘magnificent 7’ megacap tech stocks that have been leading the rally since the October 2022 lows have all taken a beating since yesterday – some losing 2% within intra-day trading. For perspective, this equates to 500B in lost equity within a day.
US consumer credit also caught headlines this week, as May reporting almost doubled from previous reports. Previously 6.4B, May reports jumped to 11.4B as consumers struggle to pay for goods and services using real money – moving instead to credit tools to cover their bills.
CPI data for June pushed further negative (-0.1%) and brought the YoY position for the US to 3.0%.
As CPI data continues to drop in the US, the chances of a rate cut are improving considerably.
Meanwhile in Australia, with our CPI and inflation data looking progressively worse, rate cuts are certainly not on our immediate horizon.
On the back of poor market performance in the US, Gold and Silver jumped, with Gold pushing above $US2400
Enjoy today’s charts and forecast.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, with 200MDA
ASX200, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.
Technical indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Overbought |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Overbought |
| CCI(14) | Buy |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: Strong Buy
*Not financial advice, please DYOR prior to any investment decisions you make.
