Major U.S. Stock Market Index Soars to Record Highs, Defying Low Inflation Indicator's Mixed Results
Tone Adapted Article:
Yo, here's the scoop on this week's stock market chaos! Nasdaq's been its usual tech-savvy self, leading the US Indices to fresh highs on Wednesday, and the S&P 500's not far behind. But the core PCE numbers didn't meet expectations, reaching 2.7% instead of 2.6%. That's one of the first negative surprises on US inflation since Trump claimed the White House.
The market's got its eyes on some good news about US trade deals. The White House said that July 9 ain't as important as it seems, and Trump's teased a deal with China. We're just missing the details.
Core PCE Insights:
Despite the numbers not being as we'd hoped, the jump in core PCE ain't too aggravating (yet). But it's a sign that markets might start seeing more negatives on US inflation.
Tech Analysis explanation:
So, what's the deal with the S&P 500? Well, its 50-day moving average is about to cross above the 200-day moving average, and that's a "Golden Cross" – a bullish signal that could mean further gains for equities. But bulls gotta pet stronger economic data if they want to see the market soar. Futures are just 10 points above the January ATH, and even the release of PCE data didn't spark major volatility.
'Sup with the 1H Chart?The recovery after the Middle East de-escalation's been intense. With buying momentum ruling the roost for five years, the index shot from 4,800 to 6,160. Bulls are rallying behind the 1H 20-period moving average, and with the RSI retracting, it's key to see the Opening Bell's reactions. There's Intermediate Resistance at 6,170 and Potential Resistance at 6,200.
If you're lookin' to buy a dip, aim for Support around the 6,150 level (close to Jan ATH), further Support at the Resistance turned Pivot 6,100, and finally, the 1H MA 200 at 6,040.
Resistance and Support Levels:
- Intermediate Resistance at 6,170
- Current highs 6,177
- Potential resistance 6,200
- Support around the 6,150 level (close to Jan ATH)
- Further support at the Resistance turned Pivot 6,100
- 1H MA 200 at 6,040.
So, while the core PCE numbers are a little concerning, the overall bullish technical outlook for the S&P 500 stays intact – for now. Keep an eye on the market's reaction to the Opening Bell to get a better sense of the coming weeks.
In light of the S&P 500's bullish technical outlook, investors might consider the possibility of buying dips around the 6,150 level, which is close to the January ATH, as a potential opportunity for gains. However, market volatility may increase depending on how economic data and US trade deals unfold, especially if the market perceives more negative signs regarding US inflation.
