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Jobless Claims Ahead Along with PPI- 11Aug, 2022

PPI, and initial jobless claims

Market Outlook – Bullish break as price action continues to recover and hold steady in the overnight. The jobless claims number out in about an hour could be a surprise – but price response is all we will watch. It is important to remember that it is not the number released but how price responds to the release. Today we are sitting near the key area of 4224-4227 which is a 50% retrace of the low of the market to the high. This has many people calling for the end of the bear market.

What we have to watch is the response of traders to price and for now that is north.

Here are some images that I have seen that I suspect are important from a data collection event in the longer term

9 of 11 sectors are overbought – so we should see some sideways motion ahead
Only 2 charts above their 50dma
Calling for recession to end in 3rd qtr of 2022 when others are arguing that it has yet to begin
Why I suspect the XHB will be a continued short
Rents
Spending habits shifting
Particularly interesting if you are touting that the earnings are fine
As a side note, CPI only fell the way it did due to the drop in energy through demand destruction

Now for the charts

Sideways to higher – best trades are long off support until support breaks and does not recover
Sideways to higher – best trades are long off support until support breaks and does not recover