Technical Analysis:
Nasdaq is currently trading around 19909, During New york session we want price to dip down and clear liquidity below and wait for MSS on smaller time frame with displacement to the upside. If we see this type of scenario we can go for longs with SL below last swing.
Fundamentals:
A look at the day ahead in U.S. and global markets from Mike Dolan
Feeding off impressive disinflation and a growing list of central bank interest rate cuts around the world, global stocks and bonds are rallying anew - with today's U.S. consumer price update set to clear the deck for Fed easing next month.
Helped by a benign producer price readout and the VIX volatility gauge VIX subsiding back below its 30-year mean, Wall Street indexes SPX, IXIC roared higher again on Tuesday and futures held the move ahead of the CPI report.
With overall U.S. producer price inflation receded by more than forecast in July, the most eye-catching element of Tuesday's report was the biggest drop in the cost of services in nearly 1-1/2 years and clear signs of ebbing pricing power.
As services inflation has irked the Federal Reserve for months, the latest development packs a punch - along with other elements of the PPI that feed the Fed-favored PCE gauge also behaving.
With today's CPI expected to show modest 0.2% monthly gains at headline and 'core' levels, and multiple measures of inflation expectations dissipating again, futures seem comfortable in pricing as much as 107 basis points of Fed easing over the remainder of the year.
Even though typically hawkish Atlanta Fed boss Raphael Bostic said on Tuesday he wants to see "a little more data" before supporting a cut, he will likely get that before September's meeting.
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