S&P 500 Technical Analysis – We have two main risks ahead
Fundamental
Overview
The S&P 500 continues
to be supported given the lack of bearish drivers. Last Thursday’s NFP looked
like it could offer a bigger pullback on a hawkish repricing in interest rate
expectations but the positive data came with lower wage growth, which is great
for the stock market.
In the short-term, the only
risk I can see is further hawkish repricing in interest rates expectations, but
we will likely need a hot CPI for that. That should provide a deeper pullback. But
given that the Fed’s reaction function remains to either wait more or cut, the
market should eventually get back to its upward trend.
We now have two main risks
ahead for the bulls: tariffs noise and US CPI. The White House is expected to
sign trade deals…
