๐ S&P 500 | Key week for the market
Do you think the S&P 500 will break to new highs, or will we see a correction first?
Weโre starting a week packed with macroeconomic catalysts that could define the next market move.
๐น Today Tuesday weโll get the CPI data (inflation):
- Below expectations โ Bullish ๐
- In line with expectations โ Slightly bullish
- Above expectations โ Bearish ๐
On top of that, there are other factors the market will be watching closely:
โข Statements from Kevin Warsh on monetary policy.
โข The evolution of tensions between the U.S. and Iran.
โข The performance of the Korean index KOSPI, which could become the main risk focus if it fails to find support.
What does the S&P 500 chart say?
The structure remains mostly bullish.
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As long as the index holds above 7472 within the Reaction Zone (ZR), there will still be a chance to retest 7540 and confirm the breakout to new highs.
โ ๏ธ 7472 is the first sign of weakness. Losing that level would increase the probability of a correction.
๐จ A drop below 7300 would confirm a corrective scenario.
Also, the VIX saw a strong rebound, although as long as it stays below the 20โ21 zone, it could still just be volatility swings without changing the marketโs main structure.
For now, the scenario still favors bullish continuation, but this week will be decisive to confirm whether the market maintains its strength.
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