The S&P 500 has gone back and forth during the course of the trading session on Tuesday as we continue to wait and see what is going on with inflation. The CPI numbers come out on Wednesday, and they will give us an idea as to what whether or not interest rates are going to continue to go higher, or if perhaps inflation is held in check. I do not necessarily think that it will change much over the longer term, but we could get a bit of noise in the short term. With that being the case, the market is likely to continue to see volatility, but as the CPI number comes out, any massive selloff will more than likely to being a buying opportunity.

S&P 500 Video 11.08.21

Underneath, we have the 50 day EMA and the uptrend line, both offering a significant amount of support, so I think that any pullback more than likely will see buyers coming into pick up value as we have seen multiple times. For example, somewhere near the 4300 level I expect to see a massive amount of support, but even if we were to break down below there, I think it is only a matter of time before the 4200 level offer support, and then possibly even the 4000 level underneath as it is a large, round, psychologically significant figure and an area that is starting to attract the 200 day EMA. I have no interest in shorting this market in any of those scenarios, but I might be a buyer of puts if I can get them at the right price. Longer-term, I think we go closer to the 4500 level.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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