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Overview:
- Dow Jones Resilient: Maintains bullish momentum despite CPI data, invalidating bearish signals.
- Nasdaq & S&P Steady: Trading above range equilibrium with continued upside potential.
- Risk-On Sentiment Prevails: No signs of weakness; bullish outlook remains intact.
CPI Data Yesterday
Dow Jones: Bullish Momentum Still Intact
Daily Outlook
Despite the release of CPI numbers, the Dow Jones remained resilient as the February 12 candle closed above the 50% level of its daily range, indicating sustained buying interest.
H4 Outlook
On the H4 timeframe, the CPI-induced bearish candle was swiftly invalidated when the subsequent candle closed above its 50% level. This reveals key insights:
- No Bearish Follow-Through: Despite favorable CPI numbers for the USD, bearish momentum failed to materialize on the Dow Jones.
- Piercing Candle Signal: A piercing candle pattern emerged, where the bullish candle closed above the 50% level of the preceding bearish candle, signaling potential upside continuation.
Approach for Bullish Follow-through
For a confirmed bullish follow-through, watch for:
- A breakout above the high of the CPI H4 candle, signaling a shift in momentum.
- A decisive close above the 44635.45 level, which could open the door for further upside movement.
Nasdaq & S&P: Steady Bullish Momentum Amid Risk-On Sentiment
NASDAQ Daily
S&P
The Nasdaq and S&P 500 continue to show resilience, maintaining steady bullish momentum as risk-on sentiment prevails in the US stock market. Unlike the Dow Jones, which has shown some hesitation, both indices are trading comfortably above the equilibrium of their current ranges, indicating sustained buying interest.
The Nasdaq is on a consistent upward trajectory, trading above the midpoint of its current range. This bullish momentum suggests a potential draw on liquidity towards the 21948.10 - 22142.40 levels. With no clear signs of exhaustion, the index remains poised for further gains.
Similarly, the S&P 500 is maintaining its bullish stance, also trading above its range equilibrium. The next target for liquidity draw lies within the 6097.64 - 6125.29 range. As of now, there is no indication of bearish reversal patterns, reinforcing the current risk-on sentiment.
No Signs of Weakness Yet
Both the Nasdaq and S&P 500 exhibit steady upside momentum, with no evident signs of weakness together with DJI that would suggest a transition to a bearish environment. As long as the risk-on sentiment remains intact and the lows of our ranges are still not being invalidated, the outlook for US equities stays optimistic.
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