| | | | Welcome to ‘Chop City,’ and October’s CPI Inflation Data
Consumer Price Index numbers are out at 8:30 a.m. ET this morning before the market opens. Then Tesla has the big Oct. 10 robot announcement coming up at 10 p.m. ET. Elon Musk also dropped a hint that a new product will be unveiled! Then don't forget, PPI is out on Friday in the premarket...
Come join me as we dive in and see what is moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
Welcome to Chop City
The market’s been stuck in a phase that I like to call “chop city” lately, with price action just drifting sideways until Wednesday’s pop, teasing us with minor breakouts that quickly fizzle out.
We’re seeing this behavior across multiple sectors — semiconductors being a prime example. These moments of indecision can be frustrating, especially when technical setups start to form…
Only to hit resistance and stall out.
This kind of choppiness is usually a sign of corrective action. What we’re seeing are secondary bounces — those little recoveries that look like they’re building momentum, but in reality, they’re part of a larger corrective pattern.
They might bounce off support levels, but they aren’t breaking any meaningful ground. And that’s exactly what we’re seeing in semiconductors. They’ve worked through some secondary bounces, but they’re still facing stiff resistance and haven’t made any real progress.
Now, if you’re looking at this from a technical perspective, you know what’s coming next. When a market struggles to break through resistance and price action becomes “overlapping and nasty,” it’s usually the prelude to a flush lower.
We’ve seen this movie before...
The market teases with upside moves that can’t get any traction, then suddenly, we get a pullback to a lower low.
And here’s the kicker — this behavior is not unique to one sector. It’s happening in commodities like copper as well. Copper turned down right at a major resistance level, and if you’ve been watching that market, you know it’s been trending down for a while now.
I’ve been warning about this, and it’s playing out just like we expected. The next key support level in copper isn’t far off, and if it doesn’t hold, we could be looking at a much deeper dive.
So, what do we do with this kind of choppy, indecisive market?
The key is patience. Jumping in too early during a corrective phase can be a recipe for frustration — or worse, losses. We need to wait for a cleaner breakout or a confirmed flush before making moves.
A breakout above resistance with follow-through? That’s our signal to act.
Until then, let’s stay cautious, watch the technicals, and be ready for what comes next.
This kind of choppy price action doesn’t last forever — eventually, we’ll get the breakout or breakdown we’re waiting for. The goal is to be ready when that moment arrives.
Today’s Daily Chart Setup: Fabrinet (FN)
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