S&P 500 Technical Analysis – Inflation data didn’t help much
Fundamental OverviewThe S&P 500 remains under pressure as despite a softer US CPI and US PPI reports, the components that feed into the Core PCE increased the Fed’s preferred inflation measure. In fact, the Core PCE Y/Y is now projected at 2.7% vs. 2.6% prior, while the M/M measure is seen at 0.3% vs. 0.3% prior. The main fear in the market is that in case we get a slowdown, the Fed might not be fast enough in cutting rates amid the inflation constraint and eventually worsen the economic pain. Moreover, the uncertainty around Trump’s tariffs add to those expectations of a slowdown in growth and potentially higher inflation in the short-term. Today we have the University of Michigan Consumer Sentiment report. As a reminder, the jump in long-term inflation expectations to a new 30-year high in the prior report weighed on the market, so that’s going to be in focus today. S&P 500 Technical Analysis – Daily TimeframeOn the daily chart, we can see that the S&P 500 broke below the key 5720 level and extended the drop into the 5500 level. From a risk management perspective, the sellers will have a better risk to reward setup around the 5720 level where they can step in with a defined risk above the level to position for a drop into the 5400 level next. The buyers, on the other hand, will want to see the price breaking above the 5720 level to regain some conviction and pile in for a rally back into the all-time highs.S&P 500 Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see that we have a downward trendline defining the bearish momentum. This is where we can expect the sellers to step in with a defined risk above the trendline to position for further downside. The buyers, on the other hand, will look for a break higher to target the next trendline around the 5720 level.S&P 500 Technical Analysis – 1 hour TimeframeOn the 1 hour chart, there’s not much else we can add here as the sellers will look for a rejection from the trendline, while the buyers will look for a break higher to target the next major trendline. The red lines define the average daily range for today.Upcoming CatalystsToday we conclude the week with the University of Michigan Consumer Sentiment report. This article was written by Giuseppe Dellamotta at www.forexlive.com.
Fundamental Overview
The S&P 500 remains under pressure as despite a softer US CPI and US PPI reports, the components that feed into the Core PCE increased the Fed’s preferred inflation measure. In fact, the Core PCE Y/Y is now projected at 2.7% vs. 2.6% prior, while the M/M measure is seen at 0.3% vs. 0.3% prior.
The main fear in the market is that in case we get a slowdown, the Fed might not be fast enough in cutting rates amid the inflation constraint and eventually worsen the economic pain. Moreover, the uncertainty around Trump’s tariffs add to those expectations of a slowdown in growth and potentially higher inflation in the short-term.
Today we have the University of Michigan Consumer Sentiment report. As a reminder, the jump in long-term inflation expectations to a new 30-year high in the prior report weighed on the market, so that’s going to be in focus today.
S&P 500 Technical Analysis – Daily Timeframe
On the daily chart, we can see that the S&P 500 broke below the key 5720 level and extended the drop into the 5500 level. From a risk management perspective, the sellers will have a better risk to reward setup around the 5720 level where they can step in with a defined risk above the level to position for a drop into the 5400 level next. The buyers, on the other hand, will want to see the price breaking above the 5720 level to regain some conviction and pile in for a rally back into the all-time highs.
S&P 500 Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a downward trendline defining the bearish momentum. This is where we can expect the sellers to step in with a defined risk above the trendline to position for further downside. The buyers, on the other hand, will look for a break higher to target the next trendline around the 5720 level.
S&P 500 Technical Analysis – 1 hour Timeframe
On the 1 hour chart, there’s not much else we can add here as the sellers will look for a rejection from the trendline, while the buyers will look for a break higher to target the next major trendline. The red lines define the average daily range for today.
Upcoming Catalysts
Today we conclude the week with the University of Michigan Consumer Sentiment report. This article was written by Giuseppe Dellamotta at www.forexlive.com.
