S&P 500 Forecast: SP 500 Gets Rocked by CPI Miss

• In my daily analysis of the S&P 500, it's worth noting that we have a significant miss in the consumer price index numbers in America, and we have seen absolute panic since then.
• That being said, we are starting to see a little bit of support near the 5600 level.

I think this is going to be a short term pullback that eventually gets bought into. After all, Wall Street will come around to the idea that interest rates are going to boost everything and therefore, they like the idea of buying into a potential fed rate cutting cycle. Whether or not this lasts who knows but at this point in time, this is a market that's very much in an uptrend and it's difficult to argue that I don't have any interest in trying to fight the trend at this point in time because it's so strong.

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Therefore, I look at this dip as a potential buying opportunity, but I would do so cautiously. I wouldn't jump in with a huge position right away as momentum starts to swing in your direction, then you can start to have the argument of buying more.

Don’t Forget PPI

Right now, I think you have to look at this through the prism of a market that quite frankly, got a little bit of a shock, but it's also got PPI to look to on Friday. And if that ends up being hot, because we've seen that happen before, it'll throw everything back into disarray. And then we'll just do what we always do, and that's chase a handful of stocks on Wall Street to drive the index higher. Remember, it's not an equal weighted index. It's an ETF of about 4 or 5 stocks and it will remain that way as long as ETF trading is such a big deal and there's a lot of money to be made in ETF trading so, I don't see that changing.

Then of course as long as it is not an equal weighted index it never has been so, I still think at this point in time, if Nvidia, Microsoft, Apple, all the usual contestants are doing well, the S&P 500 does well right along with it.

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