Hot CPI Released, Crypto Holds Support, Watch for Hook Signals

The Consumer Price Index was released this morning.

The Consumer Price Index is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. The CPI is used to track inflation, which is the rate at which prices for goods and services are increasing. When the CPI is released, it provides an indication of how much prices have changed over a given period of time, typically a month or a year.

If the CPI release shows that prices have increased more than expected, it could be an indication that inflation is rising at a faster pace than anticipated. This could lead to concerns about the impact of inflation on the economy, such as higher costs for businesses and consumers, and potentially slower economic growth.

 In January, the Consumer Price Index for All Urban Consumers increased 0.5 percent, seasonally adjusted, and rose 6.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.4 percent in January (SA); up 5.6 percent over the year. 

This number was above the consensus forecast, but so far today it looks like the market has anticipated and priced in this number, which is good for risk assets like cryptocurrencies. 

After the recent pullback, be aware that we might start to see some RSI “hooks” coming into the “Trading Signals” area of the site; these will look like this if the price supports it: 

A valid RSI hook would be a long signal, although I think that this might only be good for a very short swing signal.