S&P 500 outlook after the CPI data on Thursday

S&P 500 may open in the red on Thursday after the Bureau of Labour Statistics said inflation was up more-than-expected in December.  

S&P 500 to find resistance at the 4,800 level

Versus a year ago, consumer prices in the United States were up 3.4% last month – well above the Dow Jones estimate at 3.2%.

The data could make it harder for the benchmark index to break to the upside, as per Jason Hunter – the head of technical strategy at JPMorgan. On CNBC’s “Closing Bell”, he said a day earlier:

For the month, consumer prices came in up 0.3% on Thursday versus a 0.2% increase expected.

Jobs report last week was also red hot

Excluding food and energy, the so-called core consumer price index (CPI) printed up 3.9% for the year – also hotter than the economists’ forecast for a 3.8% increase.

The core reading was, however, in line with estimates for the month. Still, Jason Hunter of JPM remains cautious as there tends to be a “period of consolidation” even in a bull market.

Last week, the U.S. Bureau of Labour Statistics said non-farm payrolls increased way more than expected in December ass Invezz reported here.

But Josh Brown – chief executive of Ritholtz Wealth Management is convinced the Nasdaq Composite is not overbought and the momentum in that index could continue in the coming weeks.