The Nasdaq 100 ETF $QQQ saw its recent rally attempt stall at key resistance before renewed buying emerged following softer-than-expected inflation data. Headline CPI rose 0.2% versus 0.3% consensus, while core CPI met expectations at 0.3%. The tame report sparked early optimism, with $QQQ approaching oversold territory on RSI.
Yesterday’s selling appeared orderly in blue-chip tech, but beneath the surface there was heavy damage in speculative momentum names. Margin calls forced liquidations across high-beta tech and spilled into precious metals, pressuring $GLD and $SLV as leveraged positions were unwound. The shakeout reflects fragile positioning after eight sessions in which 115 S&P 500 stocks dropped more than 7% in a single day — historically a warning sign for potential corrections.
Now the key question is whether the CPI-fueled bounce evolves into a sustained rally or fades. Crosscurrents remain strong. Speculation that President Trump may soften trade terms with China and reduce metal tariffs is adding to optimism. Meanwhile, Japan’s Prime Minister signaled the Bank of Japan may delay rate hikes, temporarily supporting U.S. AI-heavy flows.
Europe’s steady growth and Japan’s outperformance highlight global rotation trends. Key tickers to watch include $QQQ, $GLD, $SLV, $SPY, and $EWJ.
Responsible Investor 