In contrast to yesterday’s CPI print, PPI came in below estimates at 0.2% headline and core. Futures erased their sharp overnight losses which saw them nail our next downside target and now point to modest gains.
A bounce here would be more convincing if SPX were to also reach its 50-day moving average.
continued for members…
If the SMA50 can hold, there are some very clear upside targets.
Note that SPX and SPY never did reach their SMA50, so the rebound is less assured than it might have been.
VIX has retreated from the rising red TL that contained many moments of equity weakness since November, but didn’t quite reach the falling TL from March 2023 (18.25ish.) Again, it takes some of the potential equity rebound energy off the table.
Currencies are largely where they were yesterday. EURUSD didn’t reach new lows, USDJPY is still slightly broken out, and DXY is still under control.
Oil and gas are supporting this morning’s “inflation isn’t so bad” theme, allowing the 10Y to hold at around yesterday’s highs.
