S&P 500: 4080 and 4150 points will be decisive in the short term

S&P 500 returns to test key resistance ahead of US CPI

The S&P 500 has been stumbling back below its early June peak at around 4150 points since last week. The positive surprises from the ISM and NFP and the general upturn in risk appetite among market participants have enabled a sharp rebound in US equity indices in recent weeks, but the underlying fundamentals remain unchanged, to the disadvantage of the assets. risky as the specter of a recession grows and central banks tighten monetary policy.

The combination of these two factors explains major corrections in the indices that can last several quarters. Therefore, unless central banks end their monetary tightening – which seems unlikely in view of inflation – or the economic outlook improves, equity indices are likely to remain under pressure and lows n probably haven’t been registered yet.

In the short term, the evolution of the markets could be suspended from the new data on US inflation for the month of July published on Wednesday. The consensus hopes for a slowdown in inflation to 8.6%, against 9.1% in June. A more marked slowdown would be good news for all markets, while a less marked slowdown, or even an acceleration, would be very bad news.

S&P 500 (Turbo US 500) daily price chart – key levels


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