Next Day Prep: Nasdaq Whiplash Anxiety Precedes CPI Spike
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Nasdaq hit a new all-time high but erased gains later. Market mood cautious with focus on upcoming CPI inflation report, causing anxiety.
Overnight Headlines
- Semiconductor sector saw mixed performance as Micron and Intel rallied while NVIDIA and AMD faced pressure amid geopolitical concerns.
- Monday.com (Ticker: MNDY) stock plunged despite beating earnings and revenue due to conservative guidance for the future.
Economic Announcements
Watch for the upcoming CPI inflation report tomorrow for potential market impact.
Earnings Highlights
- Costco (Ticker: COST) showing strength near highs, watch for breakthrough at $990.
- eBay (Ticker: EBAY) showing bullish momentum, potential breakout above $95.50.
- Amazon (Ticker: AMZN) coiling up around $220, watch for breakout at $221.50.
- Shopify (Ticker: SHOP) eyeing breakout at $149 resistance level.
- Home Depot (Ticker: HD) potential CPI play if inflation number is cooler than expected.
Top Movers
The Trade Desk faced a double downgrade, while SoundHound AI received a Buy upgrade.
Quick Trade Ideas
- SPY: Support at $635, resistance at $636.88.
- QQQ: Support at $572, resistance at $574.28.
Key Takeaway
Market cautious ahead of the CPI report. Traders focusing on momentum plays like Costco and eBay, and anticipation plays like Amazon and Shopify. Keep an eye on Home Depot for potential CPI-related moves.
Remember key levels for SPY and QQQ for potential market direction following the CPI release.