S&P 500 Price Forecast – Stock Markets Await the CPI Figures

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S&P 500 Technical Analysis

The S&P 500 initially tried to rally on Thursday in the futures market, but as you can see, we have given back quite a bit of those gains. Stock markets have soured a bit as we are awaiting the crucial CPI figures on Friday. The CPI numbers will have a major influence on what people expect from the Federal Reserve when it comes to monetary policy. Ultimately, this is a market that looks as if it is ready to continue its volatility, but once we get this number, people trying to get involved and bet on rates.

The bond market is suggesting that perhaps traders are anticipating that the CPI number is going to come in extraordinarily hot, which should drive the stock market lower. On the other hand, if the number was to come in showing signs of slowing down, it’s possible that we could send this market above the 4200 level. At this point, the 4200 level is a short-term resistance barrier that the market has been struggling with. If we can break above there, then the 4300 level would be your next target and an even bigger resistance barrier.

If the market breaks down below the 4070 level, it’s likely that we will go to the 4000 level, eventually the 3900 level. Even more pressure could open up a move to the 3800 level where the market had bounced from. Either way, I’m not very bullish on the stock market, but in the short term it looks as if we are going back and forth and looking for some type of directionality.

US Stock Market Forecast Video for 10.06.22

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This article was originally posted on FX Empire