![]() ![]() The bigger question is one of continuation potential. That’s a bullish reversal formation and if buyers can pose a breach of the upper- trendline, which has held multiple inflections already this year, then the door can quickly open for bullish scenarios. Going back to the weekly chart, that longer-term falling wedge remains in-place. ![]() S&P 500 Daily ChartĬhart prepared by James Stanley S&P 500 on Tradingview S&P Strategy This came in as support after the resistance check at 4k, and it held the lows again last week over a three-day-period from Tuesday-Thursday. It’s the same spot that was resistance earlier in November, just before that falling wedge breakout. There’s a stubborn spot of support in the S&P 500 that does not want to give way. S&P 500 Daily Price ChartĬhart prepared by James Stanley S&P 500 on Tradingview S&P 500 Short-Term The next day, the S&P pushed up to the 4k resistance level and that held for the next couple of weeks, until bulls finally forced a breach of the 200 day moving average, only for resistance to show up at the same 2022 trendline that caught the highs in August.Įach of those past two CPI releases are marked on the below daily chart in green. October CPI was released on November 10th and this time, both Core and Headline CPI printed inside of expectations and this led to a strong risk-on move, with the S&P 500 breaking out of a short-term falling wedge formation (resistance as the dashed line below). But, there was another major move that took place about a month later, also driven by CPI. As noted above, the reversal on October 13th, which set the yearly low in the index, showed up on the heels of a CPI print. S&P 500 Weekly Price ChartĬhart prepared by James Stanley S&P 500 on Tradingview S&P 500 Intermediate-TermĬPI has had a massive impact on the S&P 500 over the past two months. To be sure there’s been fits and starts of trends along the way but, on net, nothing that’s taken hold yet.Īt this point, ahead of CPI and FOMC, the S&P 500’s 2022 price action has been working into one large falling wedge formation. And now, a month later, that level remains in-play. ![]() The S&P 500 began to re-engage with resistance at the 4k psychological level on November 11th. And here we are, two months later, and those lows remain unfettered as stocks continued in a bullish trajectory for much of the next month. As usual CPI data was released at 8:30 AM ET and by the time equity markets opened an hour later, stocks had already begun to rally. That low in the S&P printed on October 13th, which was another CPI print, with a brutal initial reaction that saw the S&P make a fast run at the 3500 level. This took a toll on equities, with the S&P down at one point by more than 27% this year. Earlier in the year as CPI was climbing, stocks were vulnerable as markets started to price in more and more rate hikes out of the FOMC. Tomorrow brings the release of CPI data for the month of November and throughout this year, CPI has been a major driver for stocks. ![]()
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