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.
Reprinted from FXStreet，the copyright all reserved by the original author.
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