To The Moon

Here is the content of this article: - Thursday's session - The main events of the week - The current market atmosphere - The levels retained for the SPX.

SUMMARY

The equity market rallied strongly and broadly on Thursday, helped by encouraging inflation data.

$S&P 500(.SPX)$ rose 1.3% for its highest close since Feb. 15, with ten of the index's 11 sectors ending in positive territory.

SPX 4200 on radar

$NASDAQ(.IXIC)$ climbed 2%, the biggest one-day gain since March 16.

$DJIA(.DJI)$ rose 1.1%.

• The catalyst would have been the latest producer price index -PPI-

Business costs rose 2.7% year over year, below expectations of 3%. On a monthly basis, the PPI fell 0.5% in March, the biggest drop in three years...

As a reminder, the index measures the evolution of producers' selling prices. And a slowdown in rising business costs could equate to a rebound in profit margins, which would support earnings.

The PPI data follows Wednesday's colder than expected reading on consumer prices.

MARKET SCENARIO

• Investors hope that slowing inflation will prompt the Federal Reserve to stop raising interest rates, which aim to reduce inflation by reducing economic demand.

The Federal Open Market Committee, which sets rate policy, is due to meet in early May to consider its next policy move. According to the barometer, another rate hike of 25 basis points is on the agenda...

In other economic news, weekly jobless claims rose for the first time in three weeks. They climbed from 11,000 to 239,000 for the week ended April 8.

The Treasury market was fairly calm, although stocks surged. The two-year Treasury yield stood at 3.975%, up slightly from Wednesday's close. The 10-year Treasury note closed at 3.45%, an increase of about 3 basis points.

• For the time being, investors will be focused on the results of the banking sector. $JPMorgan Chase(JPM)$ $BlackRock(BLK)$

SPX LEVELS

• SPX's trend channel from the SBV lows remains fully intact. 4200 is the next big resistance to watch.

SPX-SVB low

Please find below the levels selected for the SPX (Last week)

• Key levels: 4000 - 4100

• Upper zone: 4150-4175 and 4200 in major resistance

• Lower Zone: 4100-4050-4000 and 3900 in major support

SPX Levels

Thank you for reading and supporting. Welcome new followers

@TigerStars @CaptainTiger @TigerPM