PPI downside surprise along w/ Trump's advisors saying he will "gradually bring Tariffs in" (We'll see if he agrees with this) resulting in mild bounce for US equity futures this morning. While a bounce is certainly near, it still might take 3-5 days before a true low is in and I'm eyeing the Inauguration as having a potential better likelihood than now, as price patterns aren't yet complete from a wave perspective and DeMark counts are also not yet in place. However, for those that missed last nights report (which was sent out early this morning) i do detail 10 reasons why a larger than expected bounce is near. For now, it's important to watch for evidence of this bounce from 5814 in Futures taking a three-wave trajectory, which ultimately might result in yet more selling after CPI (as this doesn't necessarily need to follow PPI's path) The area near 5700 has more importance than 5800. However, breadth and momentum would improve on any further selling pressure and these divergences will also be something to watch over the next couple days. ES 0.30% _F S&P Front month futures shown below - Both ES_F and ^SPX 0.39%  still look possible to not get meaningfully above 5925 before turning back lower, as breadth wasn't as good as expected from yesterday's lows, and structurally the move does not look complete.

Silver's reversal today looks meaningful and likely takes prices down to $27 before a bottoming and the start of a push back to new all-time highs. Given that the Fed is likely on hold with Rate cuts being distant and both Real rates and US Dollar pushing higher, it's unlikely that the next couple weeks will be too constructive for Precious metals, and specifically, Silver which has closer ties to China. Thus, while both Gold and Silver might pull back in the next couple weeks ahead of a bottom (which might also coincide with Treasury yields peaking) Silver should underperform, at present and could undercut December lows into late January. Any decline down to $28.50 in Front month Silver futures should be seen as the start of better risk/reward opportunities for those who are seeking Precious metals strength, but for now, Silver is an underperformer to Gold and might undercut December 2024 lows, while Gold shows some positive divergence in this regard. (SI_F)

Both NVDA and AAPL are close to support, and this is also an important reason why SPX should be close to support at a time when many feel the SPX has just started to show evidence of trend damage. NVDA has gotten down to within striking distance of December lows & it's important to note that $126-$127 area also lines up with intermediate-term uptrend lines for NVDA. I'm not expecting that today is a technical low, so there stands a chance of weakening into tomorrow, but feel that the stock is growing very favorable as a risk/reward and should rebound to at least 140-143 into mid-February after potentially reaching 126.50-128.50 into tomorrow. The lack of a strong rally into mid-February would raise the odds of possible additional selling pressure into March, but for now, most of this damage seems done, technically and NVDA 0.72%  is nearing support

^SPX 0.39%  is growing closer to downside targets, and i anticipate a possible bottoming initially late Tomorrow/early Wed into CPI. Price has undercut 5800 and is now within 100 points of last November's lows. I'll detail all the reasons for this bottoming in tonight's Technical report but has largely to do with a combination of Oversold market breadth, prices hitting intermediate-term support, Elliott-wave analysis, DeMark exhaustion, and my short-term cycles in both Treasuries and Equities both start to turn higher. Note, the selloff this month has proven far more orderly than back in December, so i'm not certain we'll get evidence of Capitulation in this selling before the selling merely dries up and prices start to bounce. At present, prices are close to support, but not quite there, and i expect that into late today into tomorrow, this selloff will continue a bit more. Bottom line, the risk/reward is growing more favorable towards buying dips, and i expect a bottom to this decline this week