Traders Continue to Be Nervous Before the CPI Report
The S&P 500 is fluctuating between gains and losses as traders exercise caution ahead of tomorrow’s publication of the CPI data.
The PPI data, which revealed a 0.4% month-over-month rise in producer prices in September, was the main topic of discussion among traders today. Producer prices increased by 8.5% on an annual basis as opposed to the expert estimate of 8.4%. The news gave the dollar some support, but it is obvious that traders are not prepared for significant changes before the crucial CPI data.
The price of cruise stocks rose sharply today. In today’s trading session, Norwegian Cruise Line, Carnival Corporation, and Royal Caribbean Cruises are all up 8% to 8%. Recently, as traders attempted to gauge the strength of demand in the fourth quarter of this year, cruise stock prices have been very erratic.
Leading tech equities now exhibit varied dynamics. While Meta and NVIDIA are under pressure, Apple, Microsoft, Alphabet, and Amazon are making progress.
From a broad perspective, equities found some support close to their annual lows, but their short-term dynamics will be influenced by tomorrow’s CPI data. The market will be greatly affected by inflation statistics because traders continue to fear that an overly active Fed could send the economy into a deep recession.
Tests Support For S&P 500 At 3585
The S&P 500 is now attempting to settle below the 3585 support level. Since the RSI is still in the moderate range, there is still space for more negative momentum to develop should the proper triggers materialize. S&P 500 will head toward the next support at 3560 if it settles below the 3585 level. The S&P 500 will be pushed into the support level at 3525 if the support at 3560 is successfully tested.
To the upside, the S&P 500 must continue to trade above the level of 3585 in order to have a chance of gaining upward momentum soon. 3615 is where the next resistance level is situated. S&P 500 will go toward the next barrier at 3640 if it rises again above this level. If the 3640 level is successfully tested, the resistance at 3675 may then be tested.