Wall Street investors take a break to look at the upcoming CPI statistics

The Nasdaq 100, S&P 500, and Dow Jones are all showing signs of trepidation as the US stocks markets approach the Consumer Price Index (CPI) release on Wednesday.   Following a strong run that saw many indexes flirt with all-time highs, traders appear content to sit back and wait for new inflation indicators before making their next move. 

Nasdaq 100: Riding high yet cautious

The Nasdaq 100 has recently surged due to positive news in the technology and artificial intelligence areas.   However, Tuesday’s session demonstrated a lack of commitment, with early gains fading into a downhill drop.   This is unsurprising given that we are approaching historical highs and the CPI data is due soon.   Traders are likely waiting for inflation data to either confirm the current uptrend or create new concerns about monetary policy.   Key support levels are between 21,600 and 20,900, and a breakout may easily send the index above its all-time high. 

Dow Jones: Testing the Ceiling at 43,000

The Dow Jones Industrial Average is having difficulty breaking through the 43,000-resistance zone, which is a psychologically significant level made much more so by the fact that the 50- and 200-day moving averages are close below it.   If the index breaks cleanly, it might reach 43,500, but investors remain cautious.   The industrial-heavy index is extremely sensitive to interest rate assumptions, which is why Wednesday’s CPI data are so significant.

S&P 500: Holding steady near 6,000

The S&P 500 is locked in a holding pattern just above the critical 6,000 level.   There is a lot of technical resistance between 6,000 and 6,120, but the broad trend is upward.   As volatility falls, many traders see this as a typical “buy the dip” market, particularly as institutional money awaits more information on inflation.

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