Good morning, everyone. Well, the hotly-anticipated CPI numbers are at, and equity bulls have breathed a sigh of relief. CPI came in a little cooler than anticipated, which means Powell’s hands are not tied if he needs to use a salad-shooter to distribute more trillions of stock buyers.
Here’s the month-by-month chart. As you can see, CPI seems to be easing back. This is Powell’s “transitory” dream come true, at least for now.
As such, the equity futures went from nervous and ready to tumble into a rocket-shoot higher. Everything went up double digits.
Looking at the long-term view, the ES is moving with the predictable and comforting precision of a Swiss-made timepiece. It’s remarkable just how close the ES came to break that trendline (see above chart) but – – wouldn’t ya know it – – somehow magically managed to stay absolutely intact.
