S&P 500 Surged From Dip Buying 🥳
Wednesday’s reversal came after yet another failed attempt after CPI readings, as had been seen the session earlier after the price failed to extend Friday’s rout to start the trading week.
S&P 500 and Nasdaq 100 futures suggests the move may have been technically driven by CPI data released on Wednesday causing a plunge before the aggressive dip buying action to break the pre market high.
S&P 500 Futures
A rally that’s already added over $1.3 trillion to the S&P 500 this week powered ahead as the latest PPI data did little to alter bets on a series of Federal Reserve rate cuts. Every major group in the US equity gauge rose on Thursday, while Treasuries saw small moves.
Swap contracts priced in slightly higher odds of a half-point Fed reduction next week after a Wall Street Journal report said policymakers were considering whether to cut by 25 or 50 basis points.
SPX Price Action
US economic data shows that it is close enough to expectations to lock the outcome of the next Fed meeting in place at one 25 basis-point interest-rate cut. As it stands now, the market, still expecting a 50-bp cut sometime this year and nearly 2 1/2 percentage points through next September, is well ahead of what the data warrant on cuts.
Year-on-year PPI came in at 1.7%, with the core at 2.4%, both in line with expectations and both lower than corresponding CPI values.
Getting ready for ATH after FOMC next week?
📝 Trading tips: Wait for dip buy opportunities. This week's price action has been consistent so far - wait to enter at support for the best outcome. 555.37 to 556.88 could be a real bargain if it gets there later. Not financial advice 😉
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- koolgal·09-13TOPThanks for sharing your valuable insights and tips on how to trade SPY. 😍😍😍2Report
- SPACE ROCKET·09-13TOPThank you for the tag and awesome post!! 🙌🙌🫶🫶2Report