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S+P 500 almost fully recovers CPI shock

The slide in the S+P 500 earlier this week; that saw it fall more than 100 points from its record high at 5,048.39 after the US CPI data, was almost fully recovered by the close last night. The S+P lifted back to above 5,030 and later closed 29 points higher, at 5,029.73. There is quite a bit of consternation about that given the shift in the Fed policy outlook. However, I did note just how resilient the US stock markets are and seemingly almost bullet-proof to almost any shock that greets them. That in itself is also a warning though and whilst I can see more upside in US stocks, I am wary of such complacency, the like of which I have not seen in nearly 30 years. I have said it already and I will repeat it again now- eventually this party will come to a crunching end, but not yet it seems. The outlook for the S+P 500 to lift closer to 6k is still intact as indeed is a 40k print on the Dow Jones, but the higher we go the greater the risks will be. The S+P 500 is currently priced to reopen above 5,030 later today
 

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