Stock Markets Await the CPI Figures

The Technical Analysis of the S&P 500

The S&P 500 attempted to climb in the futures market on Thursday, but as you can see, we've given up a lot of those gains. As we await the important CPI statistics on Friday, stock markets have sunk a little. The CPI figures will have a significant impact on what people anticipate the Federal Reserve to do in terms of monetary policy. Finally, this market seems to be prepared to maintain its volatility, but once we get this figure, individuals will want to get involved and gamble on rates.

The bond market suggests that speculators are expecting the CPI statistic to be very high, causing the stock market to fall. On the other side, if the figure comes in indicating indications of slowdown, we may be able to push this market over the 4200 level. The 4200 level is now a short-term resistance barrier that the market has been battling. If we can get through that level, the 4300 level will be our next objective and a far more formidable resistant barrier.

If the market falls below the 4070 level, we are likely to see a drop to the 4000 level, and then to the 3900 level. More pressure might lead to a move back to the 3800 level, from where the market has recovered. In any case, I'm not a big fan of the stock market, but it seems like we're moving back and forth and seeking for some kind of directionality in the near run.