S&P 500 Leads Rebound After $16 Billion Injection

• Capital Inflows: More than $16 billion has flowed into the S&P 500 this month, reversing a recent trend of risk aversion.
• Economic Data: Stability in the producer price index (PPI) and a consumer price index (CPI) in line with expectations have boosted investor confidence.
• Inflation and Rates: Positive macroeconomic data has eased fears of prolonged inflation, giving the Federal Reserve more flexibility in managing interest rates.
• S&P 500 Reaction: The index has rallied 10.36% since August 7, reflecting renewed investor engagement.
• Positioning: Most of the new risk flows have been concentrated in the S&P 500, cementing its relevance in the financial market. Currently, the price of the S&P 500 is heading towards highs again, closing yesterday at 5,610.80 points, with a possible attempt to break above 5,631.75 points this week. The Checkpoint (POC) is at 5,461 points, the middle of the current sideways range that lies between 5,328.32 and the current highs. The RSI is at 62.16%, which makes the S&P 500 the focus of investment in the U.S. as a very strong buying intention is sensed this period. It remains to be seen whether the current momentum has reversed risk aversion since the S&P500 is currently the pole of attraction for U.S. investments.

Ion Jauregui - Activtrades Analyst








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