USTEC, Inflation, FED And Santa Claus

USTEC is holding its bullish market market structure and is aiming to test November highs before the End of the year.

Last week was very fortunate for bulls of USTEC as weekly candle has closed with bullish engulfing - Which is very good closure for continuation to the upside.

Even though the whole of last week was up and down all the time, The latest US CPI inflation report has set a full stop on the downside risk , as inflation was surprisingly not much above the estimated consensus -

Which was a surprise, as general anticipation (according to Goldman&Sachs) for the inflation was much higher than 1%. Therefore, presented figures have calmed down the markets and allowed for a Pull Back In Dollar Index - which currently moving up to the upside - without pullbacks.

Here's affects of CPI on USTEC at Friday 15:30 when the report was released: Dollar went for a pull back allowing USTEC to rally

As It Stands on Monday 12, Ustec is Trading Around 16380 with +0,6% Daily Gain, With Current Resistance Area (red Zone) of 16400-16450 and Support zone (green) at 16100-16150. So far Price is un able to exit this range - so best strategy is to sell and red zone and buy back at green, and do the inverse- buy at green, sell at red .

This Works Until either of the sides give up and we have a break out/down !

Our Only Risk - off event this week, is the FED minutes Meeting and Core Retail Sales this Wednesday on December 14th where talks about Tapering will take place and most likely will cause a last drop (as Inflations is not dropping) this year before the famous Santa Claus Rally Takes Place later on.

So best to trade the range until Wednesday, Then Wait for The Decision On Tapering by FED on Wednesday. And Start following the direction of the market By Friday morning.

Next Week All the Risk - OFF events will be done and there will be no more risk events after that for next 4 weeks. Hence Markets can enjoy the Christmas atmosphere and grow as they historically Do!