Important Data and Price Action

Inflation numbers for producers came in hot this morning at 5 percent when the estimate was 3 percent. Later this afternoon we will have the fed minutes and tomorrow we will get the CPI number.

It’s going to be important to see how stocks and crypto react to a negative number. If markets fail to have any meaningful drop it could be that they have already discounted the bad news and are looking forward to lower numbers in the future.

This is exactly what we saw a year ago with the October low when inflation numbers were still high but the market was looking forward to lower numbers ahead.

There’s not much new to say about the price action of the stock market other than to see how it takes the news over the next 48 hours.

We were prepared for a major turning point and so far we have put in a strong reversal with three big days in a row.

When it comes to crypto the plan I outlined is right on par with the price action.

Nothing has changed yet. Bitcoin is still holding the uptrend with a slight fake out above 28,452 that was not able to hold. Again, we will wait until price can maintain that level before getting excited.

Ethereum on the other hand has been getting crushed.

Unable to hold above the downtrend line and breaking down even further it does not look good. Bitcoin has been performing much better here and we will have to be patient and wait for more confirmation before going any further into alt coins.