Stock Markets Get Wild Ride After CPI

The S&P 500 has been all over the place during the trading session on Thursday as the market got a much stronger than anticipated CPI number, suggesting that inflation is about to get out of control. That being the case, the US dollar initially strength, driving down stocks. However, then we started to see the US dollar sell off Ian concerns of the local economy. That being the case, now it looks as if the market is still trying to figure out what to do but it is obvious that we have a lot of noise in the markets, especially right around the 50 day EMA and the 4600 level.

S&P 500 Video 11.02.22

If we can get a daily move above the 4600 level, then it is likely that we will see more upward pressure as stocks will almost certainly take off at that point. I do not have any interest in trying to get too cute with this market, because I recognize that it is extraordinarily volatile. However, we have started to look very bullish all of the sudden, and that is something that is worth paying attention to. After all, the inflation number should have scared Wall Street, but that reaction only lasted about 15 minutes. When a market refuses to go down, you probably need to start listening to it. This does not mean that is going to be easy, just that it is probably going to be bullish. I will not short this market anytime soon, unless of course something changes.

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