S&P 500 to defy hot PPI while metals tank?

💡 DMK Insight

The S&P 500’s brief recovery amid a hot PPI report shows traders are still on edge. While the index managed to bounce back from premarket weakness, it couldn’t sustain the momentum seen earlier in the week. This suggests that despite initial optimism, market participants remain cautious, especially with inflation data still coming in stronger than expected. Traders should keep an eye on the 4,400 level, which has been a significant resistance point. If the index fails to break through this level, we might see a pullback, particularly if economic indicators continue to signal inflationary pressures. On the flip side, if the S&P can reclaim that resistance, it could trigger a short squeeze, pushing prices higher. Watch for reactions from institutional players, as their positioning could shift the market dynamics significantly. Overall, the volatility is likely to persist, so keeping a close watch on the PPI and upcoming earnings reports will be crucial for making informed trading decisions.