S&P 500 Price Forecast – Stock Markets Nervous Ahead of CPI

S&P 500 Technical Analysis

The S&P 500 E-mini contract has dropped a bit during the trading session on Wednesday, as we await the CPI figures. At this point, it makes quite a bit of sense that we could see some negativity, mainly because CPI numbers will almost certainly favor the Fed tightening. That being said, there’s almost always some type of narrative on Wall Street to get stocks going higher, at least for the minute. Remember, Wall Street’s job is to sell you stocks. In other words, follow the money.

We are in a bearish market and have been for a while. Furthermore, the economic numbers are not getting better so there’s no real reason to think that the stock market should take off. Because of this, I think it’s probably only a matter of time before you see this market break back down to the 3750 level, followed by the 3700 level. The 3600 level underneath there is a significant support level, and breaking that obviously would send a shudder through the market as it would be a crash through support.

On the upside, the CPI number coming in cooler than anticipated could have the perma-bulls jumping in and pushing this market above the 3900 level. At that point, then it’s almost certain that we will test the 4000 level. The 4000 level is an area that also features the 200-Day EMA racing toward it, so I think there’s a lot going on in that area that would make it difficult to break above. All things being equal, this is a market that I like fading rallies, so the CPI number may give me that opportunity.

US Stock Market Forecast Video for 10.11.22

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