A slight sell off from earlier highs after the rip yesterday which was probably needed to be fair. It’s healthy for a pause here after such a dramatic move.
We are holding green in a fairly (un-eventful) tight range after both the SPX and NDX went red briefly earlier.
It feels like it’s a sell the winners day as the shorts continue to get squeezed higher and hedge funds de-gross the portfolio’s after yesterday’s move.
CTA’s & buybacks are not helping them as they continue to cover and support the daily bid to the market.
Yields increased across the curve as retail sales surprised to the upside & the biggest PPI decline since the pandemic peak gave the soft landing/disinflation theme a boost.
The narrative holds that the Fed is done and the market is now pricing in 2 rate cuts by July 24.