After ending Monday at 4,339, the S&P 500 rallied to 4,375.37 yesterday, hitting its highest point in 10 months. It later lost 6.37 points and closed at 4,369.

United States Producer Price Index data will be released today at 12:30 UTC, with an expected decline to -0.1%.

At the same time, United States Consumer Price Index released yesterday at 12:30 UTC with a figure of 0.1%, while the previous figure was 0.4%. United States Consumer Price Index came out at 4%, while a consensus of analysts was expecting 4.1%. United States Core Consumer Prices released yesterday at 12:30 UTC with a figure of 0.4%, while the previous figure was 0.4%.

The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. First developed in 1978, the relative strength index (RSI) is a momentum oscillator that measures both the speed and rate of change in price movements within a market — measured as a 0-100 index. In the S&P 500's case, the RSI has fallen below 30, indicating the asset is oversold. Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,323.41, thereby suggesting that the S&P 500 is becoming overvalued.

Technical analysis of the S&P price action suggests it is likely to undergo a short-term reversal amid broader bullish sentiment.

Other markets are also showing gains as Nikkei went up by 1.47% yesterday, and closed at 33,500. Notably, Nasdaq rose 0.83% yesterday and closed at 13,462.

Meanwhile, KOSPI Composite Index is down to 2,619, losing 19 points, after ending the previous session around 2,638.

Yesterday's gains have given market bulls further impetus to expect strong macro data going forward, such as United States Crude Oil Inventories is projected to outperform its last figure with 1.48 million. It previously stood at -451,000; data will be released today at 14:30 UTC.

Also worthy of note, United States Producer Price Index projected to come out at -0.1% — worse than previous data of 0.2%; data will be released today at 12:30 UTC. Projections for United States Retail Sales are set for a continuation of decline with -0.1% while previous data was 0.4%; data will be released tomorrow at 12:30 UTC. Tomorrow at 12:30 UTC data for United States Core Retail Sales will be released, with an expected decline to 0.1% from the preceding figure of 0.4%.

The index has been trending positively for about 2 months. The past 3 months have been positive for the S&P as it added 11.37% compared to its 3-month low of 3,577.