S&P 500 Technical Analysis: Is Santa Claus coming to town?
KEY POINTS:
- US CPI surprises to the downside, potentially opening the door for an earlier than expected rate cut
- US Jobless Claims disagree with NFP report. We’ll get a clearer picture next month.
- Key technical levels are limiting the upside. Traders are waiting for breakouts.
FUNDAMENTAL
OVERVIEW
The US CPI yesterday surprised to the downside across the
board, but as we’ve seen with the NFP report, the market took the data with a pinch
of salt. The S&P 500 strengthened following the CPI release but eventually
gave back some of the gains as the bullish momentum faded.
It should also be noted
that we got the US Jobless Claims yesterday and the data was strong.
The Initial Claims remain around the same low levels we got used to for…
