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S&P 500 Price Forecast – Stock Market Lilts Ahead of CPI

By:
Christopher Lewis
Published: Aug 9, 2022, 15:20 UTC

The S&P 500 has fallen just a bit during the trading session on Tuesday as we have reached the 200 Day EMA and of course have to deal with CPI figures on Wednesday.

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S&P 500 Technical Analysis

The S&P 500 fell a bit during the trading session on Tuesday to show signs of hesitation and now looks likely to drop down to the 4100 level. You should also keep in mind that the market has rallied quite significantly for a while, so a little bit of a giveback would make a certain amount of sense. The 200 Day EMA also offers a lot of dynamic resistance, but perhaps most importantly, we have the CPI figures coming out on Wednesday.

Wall Street will be paying close attention to whether or not the Federal Reserve will have to tighten its monetary policy even further, or if they have to turn things around. At this point, Wall Street is all about the monetary flow more than anything else, because you need to remember that the stock market has nothing to do with the economy. We are most certainly in an area where we are going to run into trouble due to historical precedence, and the 4200 level is an area where we should see quite a bit of noise.

If we break down below the 4100 level, then it’s likely that we go looking toward the 50 Day EMA, which is sitting at roughly 4000. The 4000 level is an area that is going to attract a lot of attention, and therefore it might be a target for a short-term move. In general, we are at a major inflection point and therefore we need to get a little bit of clarity going. I believe that we will probably have that after the Wednesday session.

US Stock Market Forecast Video for 10.08.22

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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