US Indices open higher after the US CPI report – Dow Jones and S&P 500 technical outlook

US Stock indices are offering a decent open to the North American session after the freshly released CPI, with both the Dow Jones and S&P 500 pushing towards new highs.

Nonetheless, the theme is still of slight hesitation as traders juggle with the 50 bps cut expectations: from a 10% to 5% pricing right after the release, and back towards 10% as we speak.

Equity markets had been disregarding the recent employment reports and downward revisions in the hope of a jumbo cut next Wednesday, consequently turning to inflation to see what the FOMC will be cooking towards next week.

But this morning's inflation report offers further doubts: despite the 0.3% as-expected report, inflation is still rising.

This theme is expected to be explored in Jerome Powell's post decision speech – Any hawkishness would slow the appetite for risk.

As traders, the essential is to look at the immediate price action, and it seems that index buying is gathering steam.

We will be looking at the leader and lagger of today's action: S&P 500, Nasdaq and their intraday charts.

An informal invitation to check out our most recent Dow Jones article and post-CPI updates.

Read More:

• Dow Jones (DJIA) Technical: Poised for a potential bullish breakout as US CPI looms
• Breaking News: US core inflation rate at 3.1% Y/Y in August vs 3.1% expected
• A hesistant FX Market after the as-expected September CPI release – Technical levels

The 500-best US companies are loving the ongoing price action, with buyers pushing price discovery to new levels.

S&P bulls are currently dominating the price action since the market open, easily breaking through the previous session's 6,559 record and currently trades 10 points higher (current highs 6,574)

A technical bullish confluence between an upward trendline, the 50-Hour moving average and the boosted rate cut odds largely assisted the bullish impulse.

Watch for the reactions as momentum enters overbought levels within a longer-timeframe fibonacci target-zone. Detailed levels below.

The ongoing 4H Candle is a very strong one and taking the action to interesting levels.

Strong momentum usually takes the hand but it will be interesting to spot how participants react to the Fibonacci-extension levels based on the previous month's NFP trading.

Consolidating within the 6,570 to 6,600 zone would preserve the trend, while a rejection here could point to further profit-taking.

S&P 500 technical levels

Resistance Levels

• Daily highs 6,574
• 6,570 to 6,600 Potential ATH resistance (from Fibonacci extension)
• Higher timeframe potential resistance around the 6,700 level (1.618 from April lows)

Support Levels

• 6,490 to 6,512 pivot
• 6,400 Main Support
• 6,300 psychological support
• 6,210 to 6,235 Main Support (August NFP Lows)

While the S&P 500 and the Dow Jones continue their path higher, Nasdaq seems to be a bit more hesitant to break its 24,016 all-time high record.

The tech-focused index is a tid-bit more hesitant in its retest of yesterday's ATH.

As can be observed with the 50-hour Moving Average that is currently rounding, buyer strength will require a further boost to push put the index back to strictly bullish momentum.

As a matter of fact, the MA 50, which acted as support throughout the entire post-NFP rally, is the one technical indicator to watch for pursued upside.

Breaking this one may lead to a retest of the 23,500 Support.

Watch for breakouts either to the upside or downside of the 4H doji candle (boxed on the chart).

Nasdaq technical levels of interest

Resistance Levels

• Current All-time Highs 24,016
• ATH resistance zone (23,950 to 24,020)
• 24,250 potential resistance at middle of the May upward channel

Support Levels

• Daily lows 23,819
• 23,500 Pivot turned support
• 23,000 Key Support
• Early 2025 ATH at 22,000 to 22,229 Support

Safe Trades!

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