The big event this week, ostensibly, was the Consumer Price Index release, and it came out this morning higher than expected across the board.
Stag Party
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Chilly PCE is Out
The ostensibly most important inflation data point is out, and it came in ice cold, just the way the bulls wanted. Inflation is ostensibly a mere 1.2% now, annualized, which makes total sense if you look at any bill you pay.
Bull Market in Layers
Warm PP
Yesterday’s scheduled news was the CPI, and this morning we got the PPI (Producer Price Index). As with yesterday, it came in hotter than expected, dashing hopes on any bold rate cuts next Wednesday. Of course, considering what happened yesterday, one has to wonder if any of this matters, but more on that in a moment.
Hello, I’m Johnny Cash
Because, Walk the Line, right? Right? Sheesh. Let’s move on.
Anyway, the CPI came in right where they predicted for Y/Y and M/M, but the core CPI came in hot at 0.3 instead of 0.2. That’s all it took for folks to lose hope of a 50 bps cut in a week, and thus equities are red right now (although not by that much). The important part is that the resistance line I’ve been yammering on about endlessly held beautifully on the /ES:
