Bond yields are clearly falling, despite inflation reading slightly above expectations, although at a very high level of 2.6% YoY. Of course, the Fed is targeting PCE inflation at 2%, but the CPI data shows a clear rise in prices. The Fed indicated that inflation would accelerate in the near term, which was largely related to the base effect. Nevertheless, the market behaves quite the opposite to previous concerns about inflation. The bond yields mentioned above are falling, the dollar is losing, gold is gaining and the indices are hitting new record levels. The Nasdaq contract, the US100, reached a new all-time high and remains around 14,000 pts. We can see the continuation of the inverted head with shoulders formation. The target for bulls is marked by 127.3 Fibonacci retracement. The nearest support is located at13750 pts.
Nasdaq reached new heights. Source: xStation5
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