S&P 500 Retreats As Traders Reduce Risks Ahead Of U.S. Inflation Reports

view original post

Disney is down by 13% as its quarterly report missed analyst expectations. The market is also disappointed by the near-term outlook for the company’s business.

Tesla is down by 6% as traders react to Elon Musk’s sales of the stock. To raise money for his Twitter deal, Musk sold roughly $4 billion worth of Tesla stock in recent days.

NVIDIA is down by 5% as traders are worried that the sell-off in crypto markets will reduce demand for company’s products.

From a big picture point of view, the sell-off is broad, and all market segments have found themselves under material pressure.

Traders Prepare For U.S. Inflation Reports

Traders should keep in mind that the U.S. will release inflation data tomorrow. Analysts expect that Inflation Rate declined from 8.2% in September to 8% in October. It looks that some market participants have decided to reduce their risks ahead of this important report.

S&P 500 is currently trying to settle below the support level at 3760. In case this attempt is successful, S&P 500 will move towards the next support at 3725. A move below this level will open the way to the test of the support at 3690.

On the upside, the nearest resistance level for S&P 500 is located at 3805. If S&P 500 climbs back above this level, it will move towards the resistance at 3835. In case S&P 500 manages to settle  above 3835, it will head towards the resistance level at 3885.

For a look at all of today’s economic events, check out our economic calendar.