US stocks staged a strong rally yesterday on hope that inflation has finally peaked. DOW gained 535pts or 1.63% to close at 33309.
The development affirms the case that whole correction from January’s peak at 36952 .65 has completed with three waves down to 29653.29. 55 week EMA (now at 33169.39) is now the key hurdle to overcome. Sustained trading above that will add even more credence to the bullish case. That should set the stage for further rally to retest 36952.65 later in the year.
For the near term, in any case, further rise is expected as long as 32387.12 support holds.
