Strong US retail sales data put investors on the back foot

US500 or S&P 500 has mostly moved sideways in the last week showing the indecisiveness of the investors. The cause behind this was the US Retail sales data that surged by 1.3% in October 2022 and it is one of the strongest increases in the past eight months which has also beaten the market's forecasts of a 1% gain. This shows the resilience of the economy in the face of the increasing interest rates and validates the Feds stance of ongoing rate hikes.

US500 Daily Chart Directional bias - 1 Week 

Trade Insights – US500

The chart shows viable long positions above the pivot at 3983 with the target to test the key resistance Level at 4060 and then the test of the resistance zone between 4120 to 4140.

Alternatively, possible short positions below the pivot at 3983 heading towards the target of the key support level at 3910 and then the further test of the support zone between 3830 to 3800.

UK Inflation Rate spiked to 11.1% in October.  

One of the most important data from the last week was the UK inflation rate which jumped up higher to 11.1% in October of 2022 from 10.1% in September quite a bit higher than the market forecasts. It is the highest inflation reading since October 1981. This was the result of the upward pressure from housing and household services. The inflation would have jumped to 13.8% had the government not intervened.