The big event this week, ostensibly, was the Consumer Price Index release, and it came out this morning higher than expected across the board.
The market jolted higher (for reasons no one can fathom) for a few moments before reversing. As of this writing, the /ES is down not even half a percent (and one can imagine what the /ES would be doing if the CPI came in cold).
The NASDAQ is down just a touch over half a percent. The futures are red at the moment, but it’s definitely nothing to write home about.
The most positive thing I can say is that the breakout to lifetime highs (the highest red horizontal line) has been pretty much a dud. There was no follow through at all, and we’ve limped our way to the other side of it.
It’s amusing to me to see article after article proclaiming that this is ZERO chance of a recession at this point. Yeah, fellas, whatever. I think a stagnant economy and rising inflation are going to give us that old chestnut from the 70s, stagflation, in a bigger, badder way that the Bee Gees ever saw,
