Market Analysis: E-mini S&P 500 Positive Ahead of Earnings Season

<img src="https://fxopen.com/blog/en/content/images/2023/10/sp500-1.jpg" alt="Market Analysis: E-mini S&amp;P 500 Positive Ahead of Earnings Season" /><p>As we wrote in our October 8 market analysis, the S&amp;P 500 chart made bullish arguments, including:<br>→ the S&amp;P 500 price has reached the lower boundary of the ascending channel (shown in blue);<br>→ RSI fell to its minimum in 12 months.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/121–2-.png" alt="Market Analysis: E-mini S&amp;P 500 Positive Ahead of Earnings Season" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/121–2-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/121–2-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/121–2-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/121–2-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Technically, these factors were justified, because today, the S&amp;P 500 has strengthened, the price is near the psychological level of 4,400. Yesterday’s news also contributed to this:<br>→ inflation suddenly accelerated. The Producer Price Index (PPI) was 0.5%, although 0.3% was expected. The acceleration of inflation was influenced by the September peak in the oil market. But with the price of oil already back more than 10% from its peak, traders are not expected to be too worried about the PPI rise;<br>→ a &quot;majority&quot; of Fed officials thought another rate hike would &quot;likely be appropriate&quot; to help cool demand and bring inflation closer to its 2% inflation target over the next two years, while &quot;some&quot; said “no&quot;. “Participants generally noted that it was important to balance the risk of overtightening against the risk of insufficient tightening,” the minutes said.</p><p>As a result, as of Thursday morning, the price of the S&amp;P 500 is at a high of the week, which indicates that, according to the consolidated view, the Fed is in control of the fight against inflation in a market that is experiencing positivity ahead of the reporting season.</p><p>Corporate performance will weigh heavily on the S&amp;P 500 price in the coming weeks, with bullish momentum forming a rebound from the lower boundary of the ascending channel likely to be hampered by:<br>→ psychological level 4400, in the area of which Fibo 50% of the decline in A→B occurs;<br>→ level 4,450 – as the arrows show, it has affected the price more than once since June 2022.</p>