S&P 500 Daily Price Analysis – A Historic Peak Achieved

The S&P 500’s performance last week was nothing short of remarkable, as the index climbed to new heights. However, as we enter the new week, the index seems to be taking a breather, hovering around the 5,000 level.

Key Points

• S&P 500 reached a historic 5,000-point milestone last week.
• Market sentiment mixed before the bell; consolidation above the 5,000 mark.
• High-impact news from Federal Reserve officials may sway market directions.

S&P 500 Daily Price Analysis – 12/02/2024

Last week, the index exhibited a strong bullish trend, with investors pushing the market into uncharted territory. The closing figure of 5,026.61 underscored the market’s resilience, and the index opened slightly higher on Monday’s session, trading at 5046.25, up 0.04%.

Today, however, the US500 index displays signs of consolidation at a current price of 5027.00 (only a marginal +0.01% above last week’s close), potentially gauging investor sentiment before making its next significant move.

Key Economic Data and News to Be Released Today

With speeches scheduled from Federal Reserve officials and the Bank of England Governor, investors are bracing for potential shifts in market sentiment. Economic data, such as the US Monthly Budget Statement, will also play a crucial role in shaping market trends for the day.

And as investors gear up for tomorrow’s release of the Consumer Price Index (CPI), there’s a palpable tension regarding the outcome and its implications. Analyst expectations for the January CPI suggest a forecast of 2.9%, a decrease from the previous month’s actual figure of 3.4%. This anticipation of a softer inflation reading is critical as it may influence the Federal Reserve’s monetary policy, particularly the possibility of rate cuts.

The upcoming CPI data is a crucial economic indicator that not only reflects changes in purchasing trends but also heavily impacts the dollar’s performance and investor sentiment in equity markets​​.

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S&P 500 Technical Analysis – 12/02/2024

After breaking the 5,000 key level, the S&P 500 has been quite undecided on a direction. Although, with the asset currently trending above the 200 EMA, the uptrend might not end anytime soon.

Focusing on the Pivot Points, we observe the S&P 500 stabilizing above the pivotal 5,000 mark with a pivot point of 5,035.00. This could serve as a key psychological barrier or support for traders in the short term.

S&P 500 Fibonacci Key Price Levels 12/02/2024

Traders should keep a close eye on the following key price levels for the day: