.SPX Price Range When CPI Reaction is Bearish or Bearish

Twelve_E
2023-11-14

$S&P 500(.SPX)$ Daily Chart:

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Price closed with an indecision candle in the medium of a narrow volume gap between (1) and (2).

Both pathways apply in the very short term, as mentioned during the weekend, straight lines up are not expected.

If CPI reaction is bearish, there are several support areas, the strongest one is the 10DMA.

If the reaction is bullish, the volume base marked as (1) is strong enough to sustain price if reached.

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Will CPI drop as expected and Fed pause again?
Trading Economics expect October CPI to be 3.3%, lower than the previous data of 3.7%; the estimates of core CPI is 4%, slightly lower than the previous data of 4%. The decline of oil prices in October will help drive the CPI down. The market expects another pause in December after Fed skips rate hike in November. --------------------- Will CPI drop as expected and lead to another pause? Or will Fed increase 25bps in December?
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