PPI at All-Time Highs

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If PPI is growing at 9.8% annually (a record high) while CPI is growing at 7% annually (a 39-year high), who’s eating the difference between what producers bring in and what they must pay out? Just a hypothetical, of course, as profits – like inflation – apparently aren’t that important. Futures are higher on the news.

Meanwhile, DXY is breaking down – which will add fuel to the inflationary fires.continued for members…Blame the euro, which has strengthened to a channel top and SMA100 resistance.

While USDJPY takes advantage of the opportunity to reset without adverse effects on stocks.Gold and silver are enjoying the dollar’s dip… …as is BTC.CL and RB continue to suggest even higher inflation.

…with the biggest question still being what happens to interest rates with the Fed (purportedly) trimming back its support.While SPX has a potential H&S Pattern in the works (watch the SMA10 and channel midline at 4738)…

…ES has completed a little IH&S that targets new highs at 4810. As such, it will have to drop back through the neckline at 4660ish in order for any correction follow-through. FWIW, COMP is backtesting its SMA100. As always, keep an eye on VIX which, by dipping below its SMA10, has scuttled the 10/20 cross that had been in the works.