The NASDAQ index is down over 1.5% on the day after the higher-than-expected CPI data.The higher CPI has pushed off the expectations for the first rate cut. The market is now pricing in the most likely chance for cut in June or July with a 79% chance for cut in June and a 92% chance for a cut in July. Between now and then, the Fed officials are likely to continue to talk more hawkish about cutting anytime soon. They simply do not know. That has the NASDAQ under pressure.
At session lows in the NASDAQ, the buyers did show up against a key hourly moving average and bounced higher. However, the last few hours have seen a rotation back to the downside.
What next? What needs to be done to increase the bearish bias? What targets are in play?
I will answer those questions in this video.
This article was written by Greg Michalowski at www.forexlive.com. Source