S&P500: Stock Market Braces for CPI as US Indices Hover Near Support

S&P 500 Chops Near Flatline as Traders Test Patience After Three-Day Slide

The S&P 500 is treading water early Wednesday, little changed after a three-session pullback that’s clearly cooled risk appetite. Buyers aren’t rushing in, but sellers aren’t pressing hard either. It feels like a pause — the kind where traders are checking their footing rather than stepping aside completely.

Is the 50-Day Average the Line in the Sand?

Early trade has the index hovering above the 50-day moving average at 6766.66, and that level is front and center. Traders are watching to see whether buyers defend it or step back. A failure here could quickly shift the tone and drag the index toward the intermediate pivot at 6712.69, where dip-buyers would need to show up in size. For now, support is holding, but conviction looks thin.

What’s Capping the Upside Right Now?

On the upside, the short-term pivot at 6831.60 is the first hurdle. That area has capped early bounce attempts and kept traders from chasing strength. Above it sit the two main tops at 6903.46 and 6920.34, levels that previously stopped rallies cold and remain the bigger test for any sustained upside. Until those are reclaimed, upside moves may continue to draw sellers looking to lock in gains.

How Is the Data Shaping Sentiment?

Economic data continues to muddy the picture. The delayed U.S. jobs report showed the economy shed 105,000 jobs in October and the unemployment rate climbed to 4.6%, the highest since late 2021. November offered some relief with a 64,000 job gain that beat expectations, but the numbers weren’t strong enough to reset bullish confidence. Traders see a slowing economy, but not one that demands aggressive de-risking — at least not yet.

Which Sectors Are Carrying the Load?

Sector action reflects that hesitation. Financials, energy, materials, and consumer discretionary are modestly higher, helping offset weakness elsewhere. Technology and communication services are lagging, reinforcing the sense that leadership is narrowing. This looks more like rotation and position-adjusting than a broad risk-on push.

What Are Individual Stocks Saying About Risk Appetite?

Single-stock moves show traders are still selective. Amazon is higher on reports of discussions with OpenAI, while Netflix ticks up as Warner Bros. Discovery and Paramount slip on takeover headlines.

Lennar’s sharp drop after weak guidance is a reminder that earnings expectations still matter. Lithium stocks are catching a bid after China’s policy move lifted prices, signaling that traders will still chase clear, commodity-driven catalysts.

What’s the Setup From Here?

Technically, the S&P 500 is stuck in a holding pattern, and the levels are doing most of the talking. The 50-day moving average at 6766.66 remains the first real test. As long as buyers keep stepping in above it, the pullback looks more like digestion than damage. A decisive break would likely put the intermediate pivot at 6712.69 in play and test how committed dip-buyers really are.

On the upside, any rebound needs to clear 6831.60 to gain traction. That level has acted as a short-term ceiling, and traders have been quick to fade strength below it. A move through there would open the door to a broader challenge of the prior highs at 6903.46 and 6920.34, but that’s a tougher lift with momentum still soft and leadership thin.

Bottom line, the index is compressing between well-defined levels, waiting for a reason to break one way or the other. Fed speakers later Wednesday and Thursday’s CPI report are the next catalysts. A softer inflation print could encourage buyers to defend support and probe higher resistance, while another surprise on prices risks turning this sideways pause into a deeper pullback.

More Information in our Economic Calendar.