Futures are flat following the release of September retail sales and PPI which both missed expectations. Retail sales rose 0.2% after a 0.6% gain in August. And, PPI came in at 0.3% after a 0.1% drop in August.
Neither stale print should sway the FOMC’s December rate decision – though yesterday’s irrational exuberance just might.
continued for members…
Yesterday’s spurt reached the SMA10, but more importantly, backtested the white neckline of the well-formed H&S Pattern as well as the latest red TL from recent highs.
VIX and VX are also in backtest mode. A breakdown back below their SMA200s would damage the downside case.
In currencies, the DXY bears watching. This is the fourth day of backtesting the SMA200 since the Nov 19 breakout.
CL and RB are both tumbling over 2% this morning…
…which has helped nudge TNX back below the white midline.
I remain bearish in the short run, with the caveats that VIX could have an outsized impact in the light holiday volume and that several of the big tech companies still look particularly weak.Consumer confidence and pending home sales are both due out at 10am.
GLTA