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- Mar 14th Stock Market Update Stocks take a downturn after a high PPI read
Mar 14th Stock Market Update Stocks take a downturn after a high PPI read
$CSCO $AFRM
Mukund Mohan
March 14, 2024
Market
“The Producer Price Index (PPI) went up 0.6% today on heels of a high CPI number yesterday. This might be the short term top for the market.” 😶🌫️ 🥵
All 3 indices took a break after a hot PPI read. This could be a catalyst for a down market
To be clear a “Bear” market - when you can take aggressive short positions is usually clear when the index reading is below 21 day moving average, which for the NASDAQ is still about 1000 points away, but the 5 Day MA has been trending down. Notice in the chart below how the 21 day MA has been the support.
To give you a sense - see the NASDAQ index below. July ‘23 - start of downtrend. Aug ‘23 - confirmed downtrend. Oct ‘23 - peak of the downtrend.
The 100 MA is about 500 points lower and 200 MA is about 1800 points lower
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