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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 0.29% _F S&P Front month futures shown below - Both ES_F and ^SPX 0.30%  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)