S&P Breaks Key Support Level

The S&P broke a key support level at 4100 today and closed near the lows of the day, following nearly two weeks of volatile sideways price action. The Consumer Price Index report for May is due out tomorrow. The highly anticipated inflation report will be watched closely. Expect markets to react with continued volatility.

We are now watching the 4000 level on the S&P to determine near-term price direction. If the index closes below 4000 tomorrow, we expect a continuation of the sell-off from today into next week. If we get a strong bullish move off the 4000 level tomorrow, we expect a return to the 4100-4200 range next week.