The countdown to core PCE is on

S&P 500 is still in the grips of a shallow correction, with low 5,060s holding. Barely yet still, the countdown to core PCE is on, and I don‘t think the fear associated would be overcome given the sharply up inflation figure expected – this rhymes with the decreasing daily volume equalling low willingness to sell.

Russell 2000 continues being the hero – and look chiefly at biotech‘s increasing resilience to bond market gyrations. Higher for longer is though verbally projected to continue even if various goods orders data came in weak. Yet yields were rising nonetheless, in my view thanks to the heightening sticky inflation fears – these are quite justified, yet expanding liquidity supports more risk taking. Export data in open economies and China stock market are also showing the way – fear not rising inflation in Japan (yet).

This is how I summed up the stock market in our channel in the European hours:

Let‘s move right into the charts – today‘s full scale article contains 4 of them, featuring S&P 500, crypto, precious metals and oil.

True, some Bitcoin miners had a weaker day, but this chart is still good enough to show excessive bearish positioning that can easily backfire tomorrow. And it will.

Gold, Silver and Miners

Gold is also basing, and suffering from overly bearish inflation expectations – I favor the buyers tomorrow, and the same applies to silver and copper.

Crude Oil

Crude oil in the latest hour doesn‘t want to swing even only a bit lower today really – and that bodes well for risk taking, incl. in real assets, tomorrow.