August CPI came in slightly below expectations, with the monthly headline figure at 0.3% versus last month’s 0.5% and the annual figure at 5.3% versus July’s 5.4%. To be clear, these are still problematic numbers and remain completely out of sync with artificially low interest rates.

Only two categories in Schedule A came in at or below the Fed’s stated objective of 2% annually, reinforcing the fact that inflation is widespread and, aside from the YoY effect in oil/gas prices, is anything but transitory.

Futures reacted by racing toward the top of the falling channel as VIX predictably gapped lower.continued for members…The bigger picture for stocks remains unchanged at the moment.

As things stand, VIX should see a 10/20 cross within the next session or two, accommodating at least ES’ SMA50 tag if not lower. The drop back through the SMA10 would allow ES to break out.The other factors continue to be supportive of stocks. CL is still hinting at a breakout… …while USDJPY is biding its time, waiting to backtest its SMA200 as it emerges from the falling purple channel.DXY, GC, SI and even BTC all continue their fence-sitting. more later...