Downturn in PPI portends continued leg down in CPI. Of 11 sectors, 4 have solid EBIT correlation to PPI (commodities, utes). Least impacted are Technology, Discretionary, Comm Services and Financials.

We publish on a 3-day a week schedule:

Monday
SKIP TUESDAY
Wednesday
Thursday <-- Due to traveling, we are sending the note 1 day earlier
SKIP FRIDAY

Since the S&P 500 intraday low of 3,491 on 10/13, the S&P 500 has rallied ~15%, even after the decline posted on Wed (1/18). The 200-day moving average is 3,975 and this remains an important level. Since April 2022, the S&P 500 has not managed to close above the 200D for more than two consecutive business days. And until equit...

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