This should be an interesting week. ES came within 20 points of our next upside target on Friday. And, with so many important economic data points ahead in the next few days, we should finally see our currency and bond targets hit as well.
In my opinion, the most important data this week is Feb CPI due out tomorrow. I’ve been expecting a number below estimates, and the fedspeak around last week’s jobs report seems to support such an outcome.
TNX broke out — but, without making new highs. If investors the algos can be sold on the prospects of a low-inflation, high growth environment, then stocks have clear sailing. If not, we’re in for much more volatility. Let’s just say the headfake potential is quite high.
continued for members…
The equity picture: ES has reached its .786 ahead of SPX, so that issue will need to be resolved.
There is a good possibility that EURUSD, TNX, DXY and ZN will all tag their targets in the next couple of days.
If VIX collapses on Wed, Day 22, it would go a long way to compensating for drops in DXY, USDJPY, ZN and TNX and the sharp spike in EURUSD.
