SPX Closes Higher Before CPI Report Thursday...Breadth Remains Strong...Real Estate, Consumer Discretionary, Technology Lead All Sectors Higher...

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-The SPX +50.36 opened higher, trended up and closed higher.

-QQQ, SPY, IWM, and DIA closed higher, and each is above its 30 DMA.

-VIX moved up.

/CL, TLT and DXY closed higher, while TNX and GLD moved lower.

Tomorrow the CPI report will be released at 8:30 am ET.  Consensus CPI

estimate M/M is 0.0% vs. 0.1% prior and Y/Y 6.6% vs 7.1% prior.  Market action

Tuesday and Wednesday indicate that institutions are expecting a meet or beat

report and a market move to the upside.  They don’t know the future, however

when traders take a long position, they are willing to take the risk that they will lose

if they are wrong.

In our model account we maintain a net long position.  We did reduce our January 12 risk exposure, increased our Jan 20 risk exposure and our cash balance today.

SPY up 4.94 at 395.52, on 68.7 million shares, below average volume, up on higher volume.

VIX up .51 at 21.09

QQQ up 4.72 at 277.55

MSFT, HD, AAPL, GS led the DJIA, 22 advancers, -2

BIO, ETSY, SEDG, ALB led the SPX, 403 advancers

LCID, TEAM, ABNB, AMZN led the NDX, 81 advancers

The two-year trend term is up a little.  The one-year trend down.

Up:  QQQ, SPY, IWM, DIA,

Down:

All eleven sectors were higher on Wednesday, led by XLRE, XLY and XLK.

Advancers strengthened on Wednesday as advancers led 2,392 to 707 on the NYSE and led 3,211 to 1,453 on the NASDAQ.

The SPY MFC green line is pointed up at 37.8 and is short-term bullish.  SPY opened higher and closed higher.

Uptrend sectors:   XLV, XLP, XLB, XLI, XLF, XLE, XLU, XLRE, XLK,

Neutral sectors:  XLC, XLY,

Down trend sectors:

The 6-month intermediate trend is sideways.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up

81 of 100 NDX stocks closed higher on Wednesday

70 NDX stock are above their 30 DMA:   KHC, ROST, AZN, AVGO, ATVI, EXC, ALGN, BKNG, META, SGEN, CMCSA, JD, PDD, PYPL, SBUX, EBAY, IDXX, MU, NFLX, WBD, BKR, CHTR, AEP, AMAT, ASML, CSCO, CSX, CTSH, FANG, INTC, KLAC, LRCX, MDLZ, ODFL, TMUS, TXN, VRSK, XEL, ADBE, ADI, ANSS, CDNS, MCHP, MELI, ADSK, AMGN, AMZN, COST, DLTR, GILD, ISRG, NXPI, PCAR, QCOM, ABNB, AMD, BIIB, CSGP, CTAS, EA, FAST, FISV, ILMN, INTU, LCID, MAR, MNST, NVDA, PAYX, TEAM,

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 16

ABNB, AMD, BIIB, CSGP, CTAS, EA, FAST, FISV, ILMN, INTU, LCID, MAR, MNST, NVDA, PAYX, TEAM,

Moving Below 30 DMA = 3

ISRG, OKTA, ZM,

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