S&P 500 Price Forecast – S&P 500 E-mini Contract Spikes After CPI

Technical Analysis of the S&P 500

The lower-than-expected CPI statistics caused the S&P 500 E-mini contract to soar quite a little during Tuesday's trading session. As a result, it appears like the market is attempting to price in a weaker monetary policy. At the end of the day, we still need to consider the Federal Reserve meeting that will take place on Wednesday. The statement from that meeting will undoubtedly have a significant impact on what occurs next.

In the end, it appears that the market swiftly reconsidered the entire scenario after realizing that the chairman of the Federal Reserve will likely attempt to reduce risk appetite. In spite of being lower than expected, the CPI statistic is still a scorching 7.1% year-over-year. Since that is still unsatisfactory, I believe the Fed will try to take some action to reduce risk appetite and, as a result, lower inflation.

The market might attempt to breach the 4200 level, though, if Jerome Powell fumbles the conference, which is a possibility. As we approach the end of the year, things could spiral out of control due to that area's likely "melt up" in the S&P 500 and, of course, a shortage of liquidity. All things being equal, we are at a key turning point for the upcoming few months, and tomorrow, Jerome Powell will be in the spotlight. Over the coming sessions, if we decline below the 50-Day EMA, it might trigger a significant breach.