US Market Outlook ahead of CPI data – Sep 13th, 2022

FINXDATA.com$SPY – Market gap up and open higher again on Monday. The bullish cup and handle pattern target was around $410-$411 from last week and we pretty much closed at that level. After the long weekend, Tuesday had a little bit follow through from the previous week Friday. This past week was the 1st week since the Aug. 12th that closed up on the week after a bullish reversal. The overall market was getting oversold and the bulls managed to push it back up on Wednesday and did not let off the gas until last Friday. The $SPY and $IWM both managed to gap up and stayed above 100 and 50 SMAs. The QQQ also stayed above 50 SMA. The VIX is trading around $23-$24 range ahead of CPI data.

market outlook cpi data

US Market Outlook ahead of CPI data

The August consumer price index (CPI) is released Tuesday at 8:30 a.m. ET, and it is expected to show inflation is moderating. The report is seen as key for next week’s Federal Reserve rate decision, but economists say it is also critical for the longer-term view on interest rates since it could show whether some causes of inflation are receding. The market can take either direction depending upon CPI numbers. If CPI comes higher than analysts expectations then Market won’t shy to drop significantly lower to close prior daily gaps (407, 401). If CPI number comes in line with analyst expectations then Market will continue bear rally.

Take a look at the below S&P 500 mini future chart for Dec expiry (symbol /ES). As per 5 mins chart, the /ES is about to pop higher after hours as it is breaking out triangle pattern on 5 mins time frame.

It would be interesting to see in the near future which side gap is about to get filled first. Below is $SPX daily chart.

market outlook cpi data

The upside gap to be filled around $4220 while downside $4060 and $4010 gaps need to be filled. The CCI, Stochastic and RSI showing uptrend intact in near term. It might help $SPX to push towards 4150 range first. For more information on how to play Iron Condor and butterfly options, feel free to reach out to us by the “Contacting US” option on FINXDATA.com.

We also provide premium trading tips to the customer for more information contact us on info@finxdata.com

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Dow Jones Industrial Average 
$29,490.89  $765.38  2.66%  
NASDAQ Composite 
$10,815.44  $239.82  2.27%  
S&P 500 
$3,678.43  $92.81  2.59%  
Russell 2000 
$1,708.87  $44.15  2.65%  
CBOE Volatility Index 
$29.15  $2.47  7.81%  
Total
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