RELIEF RALLY ON FED’S FAVORITE INFLATION DATA, AI EARNINGS EXPECTATIONS OVERDONE
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Relief Rally
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that the stock market has fallen into the support zone.
- The chart shows that RSI had approached the oversold level prior to release of PCE data. PCE is the Fed’s favorite inflation gauge. RSI foreshadowed that there would be a relief rally if PCE came inline with expectations.
- The chart shows that the stock market is rallying, exactly as foreshadowed by RSI.
May 31, 2024