Risk-off and great Fed shift
|S&P 500 narrow range day, and under the hood positive SMCI earnings impact – S&P 500 remains in my 6,060s to 6,115 range pre-CPI, with one level in between emerging as respectable, and it‘s 6,088 Tuesday and Wednesday.
However, CPI and core CPI came in even hotter than I expected (check the video I am linking to, I did expect a modicum of hotness, calling inflation as having bottomed early autumn 2024), today will be a risk-off day and I am not looking for bounces to stick today, really not. New targets and levels given to clients.
Fed rate cuts are even farther, and Powell will confirm it. The Mag 7 and breadth would not save S&P 500 today – even good earnings of late will be sold into, and you know what I thought about TSLA yesterday and premarket.
Examine also the gold and oil calls, how they had been panning out yesterday and today. Risk-off is ahead, and it‘s a day for defensives, and Bitcoin with crypto plays will get hurt, and Powell‘s day two of testimony will confirm how little in terms of rate cuts we can expect 2025.
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