The CPI data today was hotter than expected and the markets obviously did not like that. I talked about a catalyst yesterday in the recap to drive price narrative and that was it but the lows absorbed well…so far.
Tomorrow we have Core PPI and that is also something to watch given the risk-off morning session the markets had today.
When we started this week my notes were dip then rip; we got the opposite.
Depending on where we close today will matter for market structure tomorrow into this news. IF we close on the highs from this morning then that’s bullish structure and hard to see sellers come in.
$4760 is the line in the sand and if that breaks then we start a new leg lower.
Crude moved higher than expected overnight but consensus is the same: we get a 6 handle and lower into next week. For me, that’s an easier market to be in right now given some things that I just don’t like with the SPX etc.
I am long WTI crude puts.
The premium video tonight has some notes regarding the PPI data tomorrow as well as some notes on market direction with the indices.