We are still buying dips (even these baby dips). March CPI could be upside catalyst for stocks to break this 18 day consolidation.

The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members

VIDEO: Stocks have been rangebound for 18 days now.  March CPI could be upside catalyst on a good reading

Please click below to view our Macro Minute (duration: 5:10).

The video in this report is only accessible to members
The video in this report is only accessible to members

Equities have been rangebound (aka consolidating) since March 15th. Since October 2023 ("bond market panic low"), a similar 25 day consolidation took place between Dec 13th to Jan 19th, before this was resolved by a 12% rally into March.

Probabilities favor, in our view, the March CPI report (Wed at 8:30am ET) being the catalyst for the upside breakout. Mark Newton, Fundstrat's Head of Technical Strategy, sees the chance for S&P 500 to reach 5,350-5,400 before a minor pullback. These 200 points represents ~5% upside from current levels. And we believe this would be ~8-10% upside for small-caps. There are multiple reasons equities could rally on a good CPI report, among the factors:- growing skepticism about “inflation progress”- growing skepticism of “Fed resolve to cut”- stocks range-bound = growing apprehension- $JPM Jamie Dimon letter suggests possible 10-year goes to 8%- Money market cash pile continues to grow- April 15th tax day is only days away = selling to raise cash Why are investors...

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