Between delays in imposing the worst of the tariffs and massive help from the energy sector, inflation came in at 0.1% MoM (slightly below expectations) and 2.4% YoY (slightly above expectations.) Core inflation, which excludes food and energy price effects, rose 2.8% YoY.

The news was just good enough to get ES up to our .886 Fib target where it retreated despite a predictably well-timed tweet from Trump that trade negotiations with China have been successfully completed.The deal is reportedly subject to final approval from Trump and Xi, which means that Xi now has maximum leverage since Trump is desperate for a “win” which will drive stocks to new highs.continued for members…

The .886 is the deepest retracement we would normally look for if the lows are to be retested. Otherwise, chartists would expect a retest of the all-time highs followed by new all-time highs. So, we’ll see.