MarketBeat Minute(2021-10-15)

Equity markets rebounded strongly on Thursday after a round of better than expected earnings reports and cooler than expected inflation data. On the inflation front, the PPI index came in below expectation and is the first sign the steep rise in prices may be ending. The caveat is that at YOY inflation gains continue to accelerate and may not end soon. There are no companies on Wall Street talking about lowering prices or deflation and most are still in price-rising mode.

Turning to the charts, the S&P 500 index is confirming a bottom at the 4,300 level. Thursday?s move confirms a Head & Shoulders reversal pattern that suggests a new all-time high will be set soon. If the pattern continues as expected the market could set a new all-time high within the next two to three weeks.