Market Makes A New High On CPI

The SPY rallied on the news. Don't chase, wait for support.

PRE-OPEN MARKET COMMENTS THURSDAY - The market has been very strong the last few weeks, but the rally has come on light volume. That is not bearish, but it is a sign that the level of conviction is low. We've seen many gaps up. Some of them stick and some of them reverse. In every instance there was a "bid check". Trading programs test to see how strong the bid is. Once that confirmation of support is established a buying opportunity sets up. The same will be true today. The big initial overnight gains have been stripped away and we are already seeing signs that a move higher will be challenged.

Daily Bulletin Continues...