PCE came in as expected, 0.1% MoM for headline and 0.2% for core. Personal income and spending, however, showed a slowdown. Income was 0.2% versus 0.4% expected and prior, and personal spending was 0.3% versus 0.4% expected and prior.

The mixed picture took a little steam off the futures, which had been up as much as 50 points overnight. Still, ES managed to hold important support as we approach the open.

continued for members…

ES has also managed to hold the white channel bottom.  Though both it and SPX closed below their SMA50s.

We have yet to see a significant bounce in USDJPY. CL and RB continue to go nowhere… …which, combined with the tepid economic data, is allowing the 10Y to continue its stall.
The risk remains that the 2Y falls faster than the 10Y. For now, though, the 2s10s has backed off the -.13 previous highs – a positive for stocks.

Michigan sentiment comes out at 10am ET.

Stay tuned…