S&P 500 Price Forecast – Stock Market Awaits CPI Figures

The S&P 500 has done relatively little throughout the trading day on Wednesday, which is not surprising given that critical CPI statistics for the month of May are due on Friday.

Technical Analysis of the S&P 500

During Wednesday's trading session, the S&P 500 oscillated back and forth, indicating that there is still some uncertainty. That said, I believe the market is happy sitting here since the CPI statistics are due out on Friday, and many people will not want to attempt to beat the news. That said, we have a substantial amount of resistance right above the 50 Day EMA, and sellers have continued to come up every time we approach it.

At this point, the market is quite likely to grind away in short-term consolidation until we receive the CPI statistics, which will decide what the market feels the Federal Reserve will do next. Many people are concerned about the Fed tightening monetary policy, and the issue now is how tight the Fed will have to go.

If we break above the 50-day EMA, the market will most likely target the 4300 area.

That's a region where there's been a lot of resistance in the past, so breaking it above there would be a major accomplishment. If we break it below the 4075 level, however, the market becomes quite negative and opens up the potential of a move down to the 4000 level, and then, given enough time, the 3900 level. Regardless, this is likely to be a very loud market for the foreseeable future, so we'll be better off waiting to see how the Friday candlestick closes before investing.