In October, there was a notable deceleration in US inflation, a development that pleased the markets as a robust signal that the Federal Reserve has concluded its interest rate hikes.
According to government data, the core consumer price index, excluding food and energy costs, rose by 0.2% from September. Economists often prefer this core gauge as it provides a more insightful indication of underlying inflation compared to the overall Consumer Price Index (CPI). The overall CPI, which includes all items, remained relatively stable, influenced by the decrease in gasoline prices.
Does this mean the stock market is risk-free?
Certainly, many stocks and sectors were bid up today and selected stocks found new footing, just check the new stock signals page here: New Power Stocks
However, don’t throw caution to the wind.
Check the weekly chart on the Real Estate sector below.
Although stocks in that sector saw a big boost today the overhead downsloping trendline on the weekly chart is potentially a strong overhead resistance level that may be a problem to get above.
I have an alert set for when prices break through this trend line so make sure you watch for some Real Time Alerts at this link.
