Here is a breakdown of where each market driver currently sits:
The U.S. Consumer Price Index (CPI) came in at 3.70% year-over-year in September, slightly higher than August’s level of 3.67%. The Core CPI, which excludes food and energy costs, came in at 4.15% year-over-year in September, lower than August’s level of 4.35%.
As we mentioned in our last newsletter, the 200-Day Moving Average being able to provide support for the S&P 500 was something we were keen on seeing, and so far, it has passed that test. The S&P 500 bounced off its 200-Day Moving Average and has found resistance at its 50-Day Moving Average. It remains to be seen which will occur first: the S&P 500 breaks out above its 50-Day Moving Average, or it breaks down below its 200-Day Moving Average.
The S&P 500’s rebound off of the 200-Day Moving Average has reignited positivity amongst investors, with this week’s AAII Investor Sentiment Survey showing that 40% of respondents feel bullish about the next six months in the stock market.
