Markets React Weakly To CPI Report

Producer Price Index hits tomorrow before the open

Economists I read today are mostly of the “it’s no big deal” after this morning’s consumer price index key numbers came in at slightly higher than expected. Many suggested that certain underlying characteristics indicated actual disinflation can be interpreted as possibly just ahead.

Stocks bounced at the open, sold off within 30 minutes of trading and then spent the day coming back but failing to reach the initial highs. Tomorrow morning’s PPI release ought to help clarify things, at least somewhat. The 10-Year Treasury yield closed at just below 4% suggesting a trace of hope re: the Fed and rates.

It’s hard to get excited about stocks. The CNN Fear & Greed Index remains in the upper bound of “greed:”

This is in line with economists reluctant to interpret a CPI report as inflationary today. It’s not a good sign, from a contrarian standpoint.

The Nasdaq 100 daily price chart shows a failed “new high” attempt:

The S&P 500 got there but with the clear RSI negative divergence:

Most actively traded stock Tesla closed below its 200-day moving average:

Apple could not make it back to the opening high:

The technology sector advance/decline percent did not improve:

Here’s the daily price chart for the 10-Year Treasury yield:

More tomorrow after the PPI and the market open.

Not investment advice. For educational purposes only.