Core PCE came in hot this morning, tagging 2% (1.9% core.)  Expenditures rose 0.4% MoM, beating income.Needless to say, this falls short of the reality experienced by most Americans, who have seen a 15-20% YoY increase in gasoline prices with the seasonal summer bump still ahead.

Will the 10Y take its cues from problematic inflation and the Fed’s tightening schedule, or from  the fact that market leadership seems to be rolling over?continued for members…

Looking for TNX to continue retreating.Along with CL and RB… The signal for stocks to sell off in sympathy will be if/when ES drops back through its SMA10 at 2675.68.

A point of reference, SPX closed 2017 at 2673.61 and closed March at 2640.87.DXY is making a show of strength……mostly USDJPY motivated.  But, I expect it to falter due to EURUSD’s support here… …and GC’s upcoming SMA200 support.UPDATE:  10:20 AM

ES dropping through its SMA10.  Will it be allowed to, or will TPTB keep the plates spinning through the end of the day/month?

Keep an eye, too, on DB.  Still looking for 12.30.