Hot CPI And High Claims Spell Some Trouble

S&P 500 made the expected dip on hotter CPI, and then went on to recover – both the macro prediction and market response I got right for clients. While the first serious support zone of 5,785 – 5,795 wasn‘t hit, the price action still offered , it had just been not suitable for swing longs initiation as premarket positioning for PPI (hello, another inflation report) took the index not too far from 24hrs ago.The other key development yesterday was in the bond market (and in higher than expected unemployment claims, over 250K) – rich day of auctions with implications.(Click on image to enlarge)More By This Author:CPI Positioning BreadcrumbsWhy SPY DeclinedConsequences of NFPs Surprise That Wasn’t