ES bounced about 1/2% overnight after tagging its SMA50 overnight. Then, we got a PPI print that confirmed what we already knew: we have an inflation problem. YoY was a whopping 6.5%. MoM came in at 1.1% versus 0.7% expectations.

Remember, it all started with an unforced error: Trump’s war on Iran, which sent oil and gas prices soaring.