July YoY PPI fell to 2.2%, below estimates of 2.3%. MoM, the index increased by 0.1% versus estimates of 0.2%. Futures responded positively to the lower than expected inflation print and are up over 0.5% ahead of the open.

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Note that ES and SPX are still in backtest mode, with potential down to SPX 5037. In fact, VIX has yet to break down, EURUSD has yet to break out, and USDJPY is still languishing well below its SMA200.

CL and RB continue to concern, though the 10Y dropped by a good chunk in response to the PPI print. The 2s10s remains on the bubble. with tomorrow’s more important CPI report hanging in the balance.GLTA