S&P500 – Index tumbled by 4.3% the worst day since June 11, 2020, after an Inflation print of 8.3%.

Chart of the Day! – 14th September 2022

• S&P500 – Index tumbled by 4.3% the worst day since June 11, 2020, after an Inflation print of 8.3%.  

Chart Analysis

The US Stock market plummeted in yesterday’s session, and the index fell by 4.3% the worst day since June 11, 2020. The August CPI data showed the inflation is still hovering at 8.3% more than the expected level and was down by just a fraction from the July month 8.5% reading. The signs are of further weakness in the market. The US500 chart shows after moving higher in the past 4 sessions on the back of investor enthusiasm the market fell sharply from the recent peak of 4110 points to touch the 3920 level. The index is testing the trend line support currently and after that the next support is at 3900 Pivot Point. Any move below the Pivot could send the Index dropping towards the Key Support Level at 3820.

Check our Trade Insights below on US500 to integrate into your own analysis.

• Resistance Zone: 4160 to 4200
• Key Resistance: 4058
• Major Pivot Point: 3900
• Key Support Level: 3820
• Support Zone: 3760 to 3730
• 200 Day SMA – Green Line
• 50 Day SMA – Red Line
• 20 Day SMA – Blue Line

Daily Chart Directional bias - 1 Week

Trade Insights

US500 Chart shows - Possible Short positions below the Pivot point at 3900 with the first target of Key Support at 3820 and after the index drops below S2 Key Support Level then further short positions to Support Zone at 3760 to 3730.

Possible Entry for Short Selling trades below the S1 Pivot Point at 3900.

Potential first take profit could be at – S2 - 3820

Potential second take profit could be at – S3 - 3760

Alternatively, US500 Chart shows - Viable Long Positions above 3920 with the first target of R1 Resistance at 3980 and then the target of Key Resistance Level at 4058. After consolidation above the Key Resistance then further test of Resistance Zone at 4160 to 4200.

Possible entry of Long Trades above the 3920 Apex Point. 

Potential first take profit could be at – R1 3980

Potential second take profit could be at – R2 4058

Potential Third take profit could be at – R3 4160