Futures are a little soft this morning in the wake of Jay Powell’s interview on 60 Minutes over the weekend. Notably, he didn’t retract any of the hawkish comments made after the last FOMC meeting.
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VIX is still bearishly aligned – though a push up through the SMA200 would confirm the position.
Currencies are also pointed toward lower stock prices with EURUSD finally breaking down below its SMA200 and the DXY breaking out.
Even though CL and RB are almost flat, TNX has pushed up through its SMA200 – meaning that our 4.37 target is looking better all the time.
The 10Y reacted more strongly than the 2Y to the Fed’s hawkishness, meaning that the 2s10s has reverted to a more inverted stance.
Economic data this week includes PMI later this morning and claims on Thursday. CPI and PPI will be updated next week.
GLTA