Week of 11/07-11/11 Inflation for October lower than expected

Bear Market Kill or Bull Trap?

Traders should still be cautious while there is no definite sign that we are exiting this bear market. Midterm elections have the markets mixed up as investors are still digesting the interest rate hike from last week. The biggest recent slides in the tech sector have been Amazon at 90dlls since earnings, Tesla this week breaking downward resistance at the 200dll mark, and META falling significantly after earnings to sub 90dll levels. On the other hand, AMD and NVDA have remained strong through the market volatility mainly due to AMD's earnings report. Global markets keep declining with China's Zero-Covid policy causing supply chain delays and tensions rise from the Russia/Ukraine conflict. Currently the SPY is around 100points away from all time highs and the fear of a greater market correction remains. Most importantly, CPI report for October came in lower that expected which drove a massive rally for the whole stock market. S&P500 gained around 20points during intra day trading on Thursday. Investors waiting to see follow through to this week's gains may end up causing another surge to the upside in which may also cause a short squeeze.