This morning’s pre-market announcement of CPI data was being heralded as perhaps the most exciting event of the week. Well, maybe not. The CPI came out, and inflation is running much hotter than expected.
You can see here how all forecast data points were beaten (which is a bad thing, since we are talking about buying power erosion here).
Equity futures, down modest after selling off slowly all night, didn’t much care. As of this moment, equity futures range from unchanged (/YM) to down about 0.7% (/NQ, shown here).
The nice fat slide shown above is just a nick, however, when you look at it over a longer time span.
As for the /ES, it continues to grind around its horizontal at 7410. It’s neither breaking out nor breaking down. It’s just……..…broken.
Regarding Bitcoin, it also keeps grinding around in the 80,000 to 82,000 range. Until it definitely breaks that trendline I’ve drawn, it’s not that interesting. I’m also not sure how impactful the so-called Clarity Act markup is going to be this week (slated for Thursday).
Some small signs of sanity are popping up here and there. Dell, which has been on the same tear recently as MU and AMD, has given up 15% of its gains since just Sunday. It could get a lot uglier.
