On the daily chart below for S&P 500, we can see that as the price failed to sustain a break above the key 4175 resistance, it sold off back to the previous resistance turned support at 4061. The buyers leant on that level with defined risk just below it and the strong NFP on Friday gave the market soft landing vibes as it looks forward to moderating inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, resilient labour market and the Fed pausing rate hikes in June.

The market is now trading in a range between the 4175 resistance and 4061 support, so we will need to wait and see which way the market breaks out and then just go with the flow.

S&P 500 technical analysis

In the 4 hour chart below, we can see that the rally on Friday was quite fast and the price has overextended as depicted by the distance from the blue short period moving average. In such instances, the price generally consolidates or pulls back before resuming the original trend. We can see that a pullback to the 38.2% Fibonacci retracement level would be nice for the buyers to keep the trend healthy and offer another good entry point as there’s also the red long period moving average acting as support.

In the 1 hour chart below, we can see that the price broke through the trendline on Friday and a pullback to the 38.2% Fibonacci retracement level would also have the broken trendline as support. The sellers will want to see the price to break below the trendline and the 50% Fibonacci level before piling in and target the 4061 level. This week the main event is the US CPI report on Wednesday with a hot report most likely being bearish for the market while a cold one bullish.