Unchanged CPI Report Lifts Equities
The equity markets start out with a bid as rates drop due to the better than expected CPI report. The S&P 500 and the Dow Jones Industrial average have made new highs. The NASDAQ 100 is holding just below resistance.
The mid-morning RSI readings from the CQG Custom QuoteBoard, using 15-minute bars for the equity derivative products indicates the markets are pulling back except the the Dow (DJI). The RSI for the NASDAQ 100 (ENQH7) is very high, and that indicates strong early momentum. The RSI readings for the E-mini S&P (EPH7), the NASDAQ 100 (ENQH7), and the DJ Euro STOXX 50 (DSXZ6) are neutral.
The Q.NYSEVolRatio and the Q.NASDAQVolRatio are positive, but they have backed off from earlier levels.
The CLEF7, Crude Oil for January traded on the Globex Exchange, RSI and the MACD are indicating an up trend.
The RSI for Gold (GCZ6) is neutral and the MACD is indicating a short-term down trend.
Yields are sharply lower in the Treasury market today.
The EUR/USD pair is lower.
Following the sharp up opening, the chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis indicates some selling is coming in at the higher levels, as the up-volume level is losing ground to the down-volume level.
Similarly, the NASDAQ 100 and the NASDAQ volume ratio readings on a 15-minute basis also show a loss of buying following the strong start.