S&P 500 and Nasdaq reach new annual highs due to low inflation. The US dollar suffers once inflation is confirmed, which strengthens US stocks.
S&P 500 records a new annual high thanks to a better inflation forecast.
The core inflation reading for May, which printed at 5.3 percent. It was the very first time that core inflation has fallen under the previous tight band ranging from 5.4% and 5.7 percent. The reality that June’s core CPI data came in lower than the expectation of 5%, at 4.8%, It seems to have given investors further evidence of the US’s ongoing deflationary tendency. Both the main metric and PPI, both were released earlier than the US opening today. has been on a downward trajectory for a while.
S&P 500 Technical Perspective
According as per the S&P 500 graph, today’s opening price will be stronger. The leading US index will likely test the area of barrier between 4528 (the 78.6% of retrace from the 2022 -big downturn) 4550. There haven’t been many index reversals. But there were two distinct weeks when prices finished down. The falls were accompanied by a rally as bulls discovered better entry positions to resume the rising trajectory.
The daily graph aids in locating the most recent annual high since prices increased Wednesday but closed under 4510. Yet as of right now, the futures market views 4550 being the subsequent point of resistance. Followed by 4585 & 4630. The continuous ascent makes it difficult to determine support stages, however the swaying bottom of 4411 is a particularly important one to monitor. With those expecting retreats shortly, the RSI is just a few points closer to returning to excessive zone.
Latest PPI inflation report is lower than anticipated.
The index of producer prices for June increased by 0.1% during the month. Which was less than anticipated. Core PPI, that eliminates fuel and food, increased by 0.1% as anticipated. The information follows Wednesday’s CPI of June, that again registered below expectations.
Nasdaq 100 Technical Outlook
The huge 2022 fall in the Nasdaq, that has dominated the US equity sprint this year, is almost fully retraced. Which is more remarkable is the fact this streak has occurred throughout an entire year. In which rates of interest kept on increase. Even as it was supported by a few mega cap firms plus AI giants.
On the most recent weekly Nasdaq futures graph, a rise over 15,260 with this 78.6% Fib retrace for the 2022 slide have followed. Suggesting that the equity market is eager to make up almost the ground it lost in 2022. After remaining near overbought area as of the end of May. The weekly impetus remains solid. As long as prices stay in a rising channel, the upswing will continue.
On a daily basis, it is easy to observe the advance over what would had been regarded as a double top. Hadn’t pricing not gone on an upward rally. The subsequent level of resistance is 15,710 from Sept, with 16,260 acting as a sign of short-term bullish exhaustion. With Tesla and Netflix begin to submit revenue reports following the big financial institutions next week. The index is just a few points shy of reaching overbought position.
