The NASDAQ index moved lower in early trading and in the process moved down to test its rising 100 hour moving average (blue line in the chart above). That moving average currently comes in at 11297.97.
On the topside, the high price for the day in the 1st hour of trading, was able to get above the 200 hour moving average at 11442.18. The high price reached 11483.17 but could not sustain upside momentum.
The current prices trading between those 2 moving averages with the 100 hour moving average at 11297.98 and the 200 hour moving average at 11442.20. Buyers and sellers are battling it out with the next shove tilting the bias in the direction of the moving average break.
Remember tomorrow, the CPI data is expected to show an oversize 1.1% gain. That is a hard number to swallow and should keep the Fed focused on 75 basis points after July 27 meeting, and keep a lid on the stocks in the process.
However there could also be a "look ahead" given the fact that crude oil prices are trading back below the $100 level (currently at $96.68). A number of commodity prices have also retraced some of their gains which could lead to a softening expectations for consumer prices going forward.
As always, the technicals will help to tell the story. However, risk will be elevated going into that key inflation data.