CPI came in at 1.9%, exactly where we expected and good enough to keep DXY steady…for now.  From Was That It? on Sep 6:

The EIA is showing a very healthy monthly increase in average gas prices for August (3.9% MoM and 8.4% YoY.) I believe this is understated, but my back of the envelope calculations indicate CPI should come in at 1.9% or higher.

Futures are off modestly, though.  And, DXY’s initial burst higher seems to be unwinding.  With an FOMC meeting coming up next week, we can expect traders to pay very close attention to how the markets react to the inflation data.

continued for members…

ES sold off just enough to backtest the previous top.

CL is pushing above the SMA200, though it’s just an intraday threat for now. RBOB’s decline continues. Gold has dropped through its SMA10, but still has support at the SMA20 and a TL off its recent lows. USDJPY’s going along with DXY, for now…

Look for SPX to do some backtesting of its own.  First up should be the previous top at 2490.87.  If that fails (probably because of USD weakness) then look for it to backtest the SMA10 at 2473.87.