The original video from today was a fairly upbeat affair, discussing how Nvidia’s great earnings had put the S&P on a path towards $5,400. However, the release of the US manufacturing data has muddied the water somewhat.
“Both input costs and output prices rose at faster rates, with manufacturing having taken over as the main source of price growth over the past two months. However, the overall rate of selling price inflation remained below the average seen over the past year."
While stronger-than-expected PMIs are usually considered positive, we are in the “good news is bad news” part of the cycle. Rising input and output costs are inflationary, and put interest rate cuts at risk, especially following the hawkish FOMC minutes released yesterday. As significant as Nvidia’s earnings were, they may not be enough to offset this bearish macro message.
In the video, I’ll reveal the level the S&P must-hold to keep the rally alive…
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