12/12 Indices, page-247

Tough close to the week for SPX.

I mentioned at the start of the week I thought we'd see a soft CPI print and markets would pop off the back of that news.

Then was expecting a hot dot plot to dump that move on it's head and we certainly saw that exact scenario play out.

Inflation is still high but has been dropping back of late which is great news.
However markets were not ready for a higher terminal rate.

Once again the guy that has the job of keeping 'price stability' is the one man that seems to cause the most instability - thanks JPow. lol

Looking at TA for SPX and the HVN at 4100 has once again proved to be a wall just too high to climb for buyers.
High for the week was exactly 4100 and then a very sharp reversal followed that.

The drop was a significant one as it broke through and closed below all major dMAs.

From a volume perspective it's clear where the biggest resistance will be if price has any upside into next week.
The largest HVN since markets starting trending down through the channel is around 3935 and 3985

With the POC around 3960 - this is the main level I'll be watching going into the week.

Many size traders will have closed out the year now so volumes will be low which sets up for plenty of volatility.
It also sets up potential for some window dressing going into years end, so it's not a straight forward path ahead.

Trade safe, stay nimble and good luck whichever way you trade...