Stock Markets Analysis and Opinion

Markets to Trade in a Range Ahead of U.S. CPI

2023.07.11 07:37

Tim Knight

It would be nicer if the steady burn-off in prices that took place all through Sunday night had held on, but no, the magical Midnight hour arrived, and it all went away. I also saw that Squirrel mentioned a “special rebalancing” that was mysteriously announced by the NASDAQ, clearly with the hope of propping up nominal index data for the sake of Ma & Pa Kettle retail investors.

ES Chart

My focus is on the /RTY, as the iShares ETF (NYSE:) is the only instrument against which I own puts. The range I’ve highlighted below is key. If we can just break below that red horizontal line, things can start getting spicy again.

RTY Range Chart

The /, on a longer time scale than the first chart, has had a short-term double top.

ES Double Top Chart

I expect the market to meander for today and Tuesday since the Next Big Lurch we’re all waiting for is the . It seems almost a foregone conclusion that it will just keep slipping, which will be celebrated as good news. A year from now, when we’re in a deflationary collapse, the government will be begging to have inflation back, but for now, people are embracing the slide.

CPI Y/Y Chart

CPI Y/Y Chart

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