SP500 : BULL TRADERS CHEER ON REASSURING CPI FIGURES
- The market has been trading inside a bullish channel since mid-April ; the mid-term trend is then bullish.
- Since the beginning of June, and another impact over the lower bound of the mid-term bullish channel, bulls have taken control of the market and ended a 7-days long correction.
The market has registered a sharp rebound over that zone, driven by hopes of reassuring inflation data in the US, after initial dovish bets from investors have been played down during the last FOMC meetings.
A short consolidation phase has also taken place between the 5th and the 11th of June, as investors were bracing for both US CPI data as well as the next decision on rates from the FED.
Today's surprisingly good inflation print in the US has sparked a bullish catalyst over many benchmarks around the world, including the S&P500.
Indeed, the fact price pressure is decreasing more than anticipated has revived hopes of a more dovish approach from the FED, which mechanically supports equity markets and pressures the US Dollar.
Investors will cautiously monitor this evening's FOMC meeting, with FED Chairman Powell's speech as the main event, in an attempt to assess what could be the central bank's projection for the next quarters.
But meanwhile, investors keep on cheering on the downtrend showed by the latest inflation data, which is seen as a major market driver for equity traders.
Both moving averages are in bullish configuration, and the DMI indicator shows a strong buying pressure while the market already trade at an all-time high.
- Even if volatility may not be over due to the looming decision on rates from the FED, the bullish spike sparked by today's reassuring CPI report is seen as a major catalyst for the market.
A pull-back towards 5,405pts remains possible but not likely at this stage, and the next resistances can be found around 5,465.0pts and 5,538pts by extension.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- Since the beginning of June, and another impact over the lower bound of the mid-term bullish channel, bulls have taken control of the market and ended a 7-days long correction.
The market has registered a sharp rebound over that zone, driven by hopes of reassuring inflation data in the US, after initial dovish bets from investors have been played down during the last FOMC meetings.
A short consolidation phase has also taken place between the 5th and the 11th of June, as investors were bracing for both US CPI data as well as the next decision on rates from the FED.
Today's surprisingly good inflation print in the US has sparked a bullish catalyst over many benchmarks around the world, including the S&P500.
Indeed, the fact price pressure is decreasing more than anticipated has revived hopes of a more dovish approach from the FED, which mechanically supports equity markets and pressures the US Dollar.
Investors will cautiously monitor this evening's FOMC meeting, with FED Chairman Powell's speech as the main event, in an attempt to assess what could be the central bank's projection for the next quarters.
But meanwhile, investors keep on cheering on the downtrend showed by the latest inflation data, which is seen as a major market driver for equity traders.
Both moving averages are in bullish configuration, and the DMI indicator shows a strong buying pressure while the market already trade at an all-time high.
- Even if volatility may not be over due to the looming decision on rates from the FED, the bullish spike sparked by today's reassuring CPI report is seen as a major catalyst for the market.
A pull-back towards 5,405pts remains possible but not likely at this stage, and the next resistances can be found around 5,465.0pts and 5,538pts by extension.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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