Don't Hold Your Breath

If you’re looking for producer prices to level off and take the pressure off consumer prices, don’t hold your breath. If anything, September’s print should serve as a strong reminder that something’s gotta give. Either consumers or retailers will bear the brunt of rising prices, and neither is all that positive for markets.

Speaking of markets, futures have completed their trip to the falling channel top just in time for OPEX tomorrow. Absent a world class head fake, this should be the hopping off point for the latest algo-driven bounce.It’s been 5 weeks since we announced a correction watch, with SPX having given up a little less than 6% at its worst. Should there be another leg down, it should be about ready to get started.