Thursday, 10 June 2021

CPI is so hot right now

US equity indexes mostly closed on a positive note, SPX +19pts (0.5%) at 4239. Nasdaq comp' +0.8%. Dow +0.1%. The Transports settled -0.7%.

SPX - daily5

VIX - daily3


US equities opened on a positive note, with the SPX pushing to a new historic high of 4249.


The Fed's favoured measure 'core' - which excludes food/energy, climbed to 3.8% from 3.0% prior. Its not a stretch to expect >4.0% with the next print in July. The pressure will really be on the fed once 6/7%. 

If you take a look at lumber, WTIC/gasoline, or just 'general prices', its difficult to see the Fed's belief will be anything but 'transitory'.



The afternoon saw considerable chop, if leaning a touch weaker into the close. On any basis though, with a new historic high, it was a day for the bulls.

With the CPI data out of the way, volatility was ground lower, the VIX settling -10.0% to 16.10.  

Summer solstice is another day closer

Extra charts in AH (usually around 5pm EST) @

Goodnight from London

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