The S&P 500 started to rise after the US CPI came in lower than expected. The consumer price index at the monthly level was finally 0. % instead of the expected 0.6%. Therefore, it is likely that traders will focus on the idea that the Federal Reserve may slow down its interest rate program. If so, it makes a lot of sense that we’re seeing a rally in stocks. Advertisement Stock Markets Crash Again Buy Dips Now! Whether this is actually the case, however, remains to be seen, because frankly, annual inflation rates are still exceptionally high, with US inflation at 7.7%. If this excites the market, I can hardly imagine what it will look like when we return to the Fed’s 2% target! In other words, I think the market is probably ahead of reality, but it wouldn’t be the first time we’ve seen it. Remember that markets are extremely emotional and volatility is still an important feature. If so, it wouldn’t be surprising if everyone sees this as a scenario where we get some kind of massive collapse only to see a market crash in the future. Looking forward to a recovery I think it is very dangerous to be heavily involved in the market right now, but it looks like the short-term target is probably closer to the 000 level. It is also worth noting that the 000 level is an area where it is not only a big, round, psychologically important indicator, but it also belongs to the area of ​​the 200-day EMA. In other words, there are many reasons to believe that perhaps technical traders are aiming for the most obvious target. So I think you have a short-term opportunity, but if we break through the 200-day EMA, it could go that far. On the other hand, if we break the 200-day EMA, the recovery is likely to be much more significant. But I don’t think this is a trend change, so keep that in mind because the market has saturated more than once.