MMT Chart: S&P Targets Lowered Amid Ominous Technical Divergence
What’s in Today’s Report:
- March MMT Chart Update: Fundamental Price Targets Lowered
- An Increasingly Ominous Technical Divergence Has Emerged in the S&P 500
Futures are trading with tentative gains and bonds are little changed after another mostly quiet night of macroeconomic news as investors look ahead to today’s CPI report.
Economically, Japanese PPI fell from 4.2% to 4.0% y/y in February, slightly above the consensus estimate of 3.9% but the release did not meaningfully move markets ahead of today’s U.S. CPI report.
This morning, traders will be keenly focused on inflation data with CPI (E: 0.3% m/m, 2.9% y/y) and Core CPI (E: 0.3% m/m, 3.2% y/y) data due to be released ahead of the bell. A “cool” print is the best case scenario for stocks to mount a relief rally after recent losses.
There are no Fed officials scheduled to speak today, however there is a 10-Yr Treasury Note auction at 1:00 p.m. ET, and investors will be watching demand metrics to gauge bond traders reaction to the CPI data in afternoon trade (a healthy, but not too-strong auction outcome would be favorable for stocks).
Finally, earnings season continues with ADBE ($4.97) and AEO ($0.50) reporting after the close.