Basic overview
The S&P 500 has been steadily rallying this week thanks to positive news on both taxes and inflation. Monday, we got a news from Bloomberg that Trump's team was exploring gradual tax increases.
On Tuesday, we got very soft US PPI report and yesterday lower than expected US headline CPI data. Market prices rose higher from 24 bps of discount before the end of the year to 36 bps after the US CPI report.
This week may have marked the peak in inflationary hysteria and the repayment of expected rate cuts, which should support the market in the future while and growth does not begin to weaken too much.
S&P 500 Technical Analysis – Daily Timeframe
S&P 500 daily
On the daily chart, we see that the S&P 500 briefly checked below the 5855 key support but eventually it bounced back strongly thanks to some positive motivators.
The buyers are now targeting the latest low around 6068 level to reverse the trend with a break above it. On the other hand, the sellers are likely to step in around the 6068 level with a marked risk above it to set up for a fall back to the support.
S&P 500 Technical Analysis – 4 Hour Timeframe
S&P 500 4 hours
On the 4 o'clock chart, we can see that we have a decline line of motion explains the bearish trend in this time frame. The sellers are stepping in around these levels with a marked risk above the transition line to position for a fall back to the support. The buyers, on the other hand, want to see the price break higher to increase the bullish bets to new highs.
S&P 500 Technical Analysis – 1 hour timeframe
S&P 500 1 hour
On the 1 hour chart, we can see that we have a couple of key levels here. We have the minor uptrend that defines the current build into the main trend.
The buyers are likely to continue the small move to position for a break above the main trend line. The sellers, on the other hand, will look for a lower break to increase the bearish bets into the 5960 level next. The red lines define the average daily range for today.
Catalysts to come
Today we get the latest US Jobless Claims numbers and US Retail Sales data.
