Stocks Level Off; Await CPI

The S&P 500 has continued to retrace, leveling off around 3810. We are seeing good support here confirmed by green triangles on the KRI. The Kovach OBV has flatlined, suggesting we need more momentum to come through before anything exciting happens. We will need to wait for CPI to be released at 8:30 AM EST. As we discussed yesterday, the markets are awaiting this data point, and will likely be quiet until then across all asset classes. All eyes are on this print, as we neared double digits last time, and recent European CPI had a similar reading. If we are able to rally, then 3937 is a likely ceiling. If we selloff further, then 3737 should be considered a floor.