Warning Signs Are Flashing Across The Market Ahead Of Today’s CPI

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Ted Zhang reviews the current market environment and explains why investors should stay cautious heading into today’s CPI report.

While the long-term uptrend remains intact, short-term technical conditions have weakened as AI stocks continue to lead the market lower.

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Our market leadership model has been downgraded to neutral, with further deterioration potentially triggering a bearish signal.

$QQQ, small caps $IWM, and mid-caps $MDY have all slipped below their 21-day moving averages, while the Nasdaq has also fallen below its 50-day moving average.

$SPX remains above the critical 7,500 level, but multiple distribution days and a close below the 8-day EMA suggest institutional selling pressure is increasing.

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Weakness continues across the AI complex as geopolitical tensions surrounding Iran, ongoing selling in semiconductor-related stocks $SOXX $SMH, and concerns about interest rates weigh on growth names.

Comments from Kevin Warsh added another layer of uncertainty by suggesting that stronger inflation data could delay any move toward easier monetary policy.

Rising Treasury #yields remain a key risk for the market, particularly for growth and AI stocks.

Higher yields increase borrowing costs, tighten financial conditions, and reduce the present value of future earnings, putting pressure on high-valuation companies.

As a result, Treasury bond $TLT $BND prices fell, yields moved higher, and investors are closely watching CPI today for clues about the Federal Reserve’s next move.

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Outside of equities, volatility picked up with $VIX jumping from around 15 to 17.

The U.S. dollar $DXY is strengthening again after reclaiming key technical levels, while #gold $GLD, #silver $SLV, and #Bitcoin $IBIT all pulled back.

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We continued to reduce risk by selling or trimming positions that broke below key technical support levels.

In the Grotection portfolio, we sold $SIMO and trimmed $SOXL and $DRAM after they broke below important moving averages or gapped to new lows.

In the Turbotection, $MRVL was sold following a downside gap and technical breakdown.

These moves reflect a disciplined approach to preserving capital as market leadership weakens rather than a shift to an outright bearish stance.

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For now, the market has not broken down, but warning signs are clearly increasing.

With CPI today, PPI tomorrow, and earnings season beginning, the next several sessions could determine whether the broader uptrend resumes or whether the recent technical deterioration develops into a larger correction.

We may perhaps be due for a correction.

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Watch this Short video where we break it all down in detail 🔽

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You can now find more details about the Market Trend and Grotection Gauge in the FAQ section on the Revere Assets website, along with additional insights into our investment process, portfolio structure, and onboarding.

▶️ https://revereasset.com/faq/

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