What happened in the market?
The market had a massive drop after some very negative CPI news detailing higher-than-expected inflation. The bad news caused a recent bullish structure to collapse and fail expectacularly.
What can we expect this week?
From a technical point of view, we can expect the market to struggle to recover without any good news. Previous support levels will be tested and investors will have to show that they want to buy at those levels.
What levels are key support?
From a technical point of view, we can see that the $380.54 level was key support. It was only tested once and the market reacted very well to it. After it bounced off that level the market continued to rally for the next few days. The last time it tested the $380.54 level was back in January 2020.
by Jose Navarro on June 12, 2022
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