S&P500 (SPX) Price Analysis – Oct 13, 2023

Daily Price Outlook

The global market sentiment has been flashing mixed signals and remained under pressure on the day. This can be witnessed by the Standard & Poor's 500 stock index, which experienced a significant drop on the day. However, this decline was mainly driven by the release of the US Consumer Price Index (CPI) data, which exceeded the predictions of experts.

It's important to understand that the Consumer Price Index (CPI) is a way to track how much the prices of everyday items are going up. In September, the CPI showed an annual increase of 3.7%. This number was about the same as the previous month, but it was a bit higher than what the market was hoping for, as they expected a smaller increase of 3.6%.

Hence, this unexpected increase in prices shook the stock market because it suggests that inflation is still a concern. This can reduce the value of money and worry investors. That's why the stock market moved down. This shows that the stock market is easily affected by economic data.

Hence, investors are closely monitoring these figures because they have the potential to influence the government's financial injections into the economy and the possible adjustments in interest rates. These, in turn, have an impact on the stock market.

Furthermore, the ongoing conflicts between Israel and the Palestinian Islamist group, Hamas, have significantly influenced global stock markets.

Inflation Concerns and Their Impact on the Financial Market

It is worth mentioning that recent reports suggest that the United States is currently facing unexpectedly high inflation rates, which poses a significant economic challenge. As a result, the Federal Reserve is considering the possibility of keeping interest rates higher for an extended period in an effort to control the growing inflation.

This situation has negatively impacted the stock market, leading to a drop in stock prices, although the US dollar remains strong. Looking ahead, market experts are speculating that the Federal Reserve might think about slightly lowering interest rates in 2024, but this could change because inflation is still going up. This situation shows that the financial world is complicated, and investors need to be watchful and ready to change their strategies based on economic news, government policies, and global market reactions.

S&P500 (SPX) - Technical Analysis

On October 13, the S&P500 (SPX) stands at 4340, experiencing a decrease of 0.62% within the last 24 hours. This observation is based on a 4-hour chart timeframe.

The pivot point for the index is pinpointed at 4357. Several significant resistance and support levels emerge around this pivot.

The immediate resistance is located at 4399, followed by subsequent resistances at 4447 and 4504. Should the index retract, immediate support might be felt at 4331, with the potential for steeper declines towards the support levels at 4287 and 4214.

Analyzing the technical indicators offers further insights. The Relative Strength Index (RSI) is currently at 54. An RSI value greater than 50 traditionally indicates bullish sentiment, suggesting a slightly positive momentum for the index.

In conclusion, the overall trend for the S&P500 (SPX) leans bearish, especially if the price sustains below the 4357 mark. On the flip side, surpassing this level could tilt the sentiment to bullish.

For short-term maneuvers, traders and investors should anticipate the index's movements around these delineated levels, especially with a potential test of the 4399 resistance in the forthcoming sessions.

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