Retail Sales (Sort of) Flat

July retail sales came in at 0.0%, a goose egg, versus expectations that were generally around 0.1-0.2%. These data aren’t adjusted for inflation, however, so the “real” change was another drop.

Markets seem to care at the moment, with ES off nearly 1%.  But, our charts had already called for a reversal yesterday after reaching upside targets across the board.

With Fed minutes coming out at 2pm ET and VIX still unable to push past the considerable suppression that has been applied at the 10-day moving average (20.51), bears should continue to exercise caution.From a fundamental standpoint, this retail sales report is horrible. It’s disappointing because it’s flat rather than up, of course. But, it’s much worse because it’s not bad enough to sway the Fed from inflation fighting.  We’ll get a peek at their minutes in a few hours, but suffice it to say this bad news is just plain ol’ bad.

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