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S&P 500 Technical Analysis: Is Santa Claus coming to town?
Table of Contents
Key Takeaways (30s Read)
The S&P 500 rebounded, recovering the critical support at 6800. A movement towards new highs is expected.
Fundamental Overview
US CPI has surprised to the downside, suggesting a potentially earlier interest rate cut. The recent data shows cooling in the labor market, undershooting Fed forecasts, with Fed Chair Powell focusing more on labor market weakness. This may lead to an early rate cut if validated in the upcoming month.S&P 500 Technical Analysis - Daily Timeframe
On the daily chart, the S&P 500 probed below the crucial support around the 6800 level but rebounded strongly, indicating buyer interest. Holding the 6800 level is pivotal for targeting new all-time highs.S&P 500 Technical Analysis - 4 Hour Timeframe
The 4-hour chart shows a downward trendline defining a pullback to the 6800 support. The price is currently retesting this trendline, with sellers aiming for a break below 6800 and buyers looking to push for bullish trends towards new highs.S&P 500 Technical Analysis - 1 Hour Timeframe
On the 1-hour chart, a minor resistance is observed around 6885. A break above this level could open the door for new all-time highs, with 6885 being the last defense for sellers.AI Analyst
AI Opinion
"The current market scenario indicates significant fluctuations in U.S. economic indicators. The downside surprise in CPI and strong initial jobless claims enhance expectations for a rate cut. This scenario is overall favorable for the S&P 500, especially as it holds above the key support at 6800, suggesting potential for upward moves. However, a slip below 6800 could lead to larger corrections, necessitating cautious investor sentiment. The market is in a tug-of-war between the optimism for new all-time highs and the technical selling pressure in play."
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