Market Analysis - Wednesday, August 12

By Tony Cherniawski of The Practical Investor

President, CIO at The Practical Investor, LLC • Aug 12, 2026 at 8:40 AM EDT

SPX futures test key resistance at 7765.84 as AI-led tech gains boost markets ahead of the CPI report.

SPX futures stayed within its immediate treading range overnight and now may be testing the Cycle Top resistnace at 7765.84. Should it break out, the correction may be concluded and new highs may appear. There is a diminishing possibility of a short-lived probe lower that may preceed the breakout. The CPI report is on deck.

Zerohedge reports, “US: Futures are higher, led by Tech as AI infra earnings boost the theme while the Semis trade was bid overnight led by a surge in Korea’s Kospi.”

The premarket VIX is consolidating above the Triangle trendline at 15.00. The trendline may hold, allowing the VIX to elevate toward the 52-day resistance. Investors are still nervous. However, the down trend in the VIX remains intact.

The US 10-year Bond Yield is retreating from the Head & Shoulders neckline. Its probable target may be the 52-day Moving Average at 45.49. A surge in volatility is expected in the next couple of days, potentially assisting the decline.

Disclaimer:

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