Markets are celebrating the US Inflation Numbers. US Inflation Rate is at 7.75%, compared to 8.20% last month and 6.22% last year. And the Expectation is a slower pace of FED Interest rate hike in the near future. And Post the Inflation Numbers S&P 500 responded strongly on the positive side and up by 5.54% approximately.
However, if you read the emotions of the participants is shows that laggard traders are chasing the late momentum in the markets. Usually, laggard momentum traders are the last ones to enter the market where the party is about to get over and the music is about to stop. And very rarely the laggards traders do get benefits out of the momentum.
And Extreme Indication signals indicate that momentum is at the extreme on Thursday’s closing which brings possible immediate pullback odds. Overall this sudden news-based rally is a questionable one.
So what do you think? Will this rally fizzle out faster than anticipated or will sustain and create a new bull market?
