The S&P 500 gave away the inflation backed gains

US500 or S&P 500 index rose 0.73% on Tuesday and equalled the 1^st December peak of 4100 points and later got slammed down to 4019 points. The sugar rush in the market was backed by the lower-than-expected November Inflation Data at 7.1%.  Over the last 12 months, the index fell by 13.20%. However, in about the last 2.5 months the index rose by 17.4% from the bottom of 3491 to peaking out at 4100 in yesterday’s session. The fed has also started a 2-day meeting. And the hot point to discuss is how much further to increase rates until reaching a peak. The November inflation print of 7.1% is unlikely to alter the Fed’s monetary policy decision on Wednesday.

US500 Daily Chart Directional bias - 1 Week 

Trade Insights – US500 – Chart shows viable long positions above the pivot at 4007 with the target to test the key resistance Level at 4060. Then the test of the resistance zone between 4120 to 4140.

Alternatively, possible short positions below the pivot at 4007 heading towards the target of the key support level at 3910. Then the further test of the support zone between 3870 to 3840.

US Inflation Rate for November

The US annual inflation rate print came out at 7.1% in November. The inflation has slowed for a fifth straight month in November 2022 and its the lowest reading since December 2021. The reading for the month of 7.7% so the drop to 7.1 in November looks good. However, despite the bigger-than-anticipated slowdown, the annual inflation is set to remain more than three times the Fed’s 2% target. This is still pointing at a high level of Inflation pointing to broad price increases across the economy.