Technicals | Jan 17 2023
The US CPI numbers last week came in as expected, and they continue to show a drop in inflation. The 2- year yields are indicating that rate rises (despite the rhetoric from the US Fed Reserve) are almost done and all of this is positive for markets.
However, the S&P500 Index is sitting at major resistance here and we still haven't seen an upside break or a sharp sell-off yet to give us a clue as to what the next move is.
The Australian market is also back to retest the December high. Not only that, but it did so with a V-shaped reversal that has left it overbought in the short-term. Ideally, we see markets cool off here slightly without coming back too much, and that would set us up for a more reliable move.
Reviewing Grange Resources ((GRR)) from a charting perspective...