Coach Mark here.

Consumer inflationary data came out this morning and it was a good win for the bulls. Bond bulls. Equity bulls. Precious metal bulls. Lots of bulls celebrating this morning and for good reason.

Inflation showed the type of progress today that can get Jay Powell to say “were making progress on inflation again.” Headline inflation missed coming in at 3.3%. Month—over-month missed as well coming in at less than a 0.1% gain. Core CPI also missed and it was its lowest reading since April of 2021.

This is the type of report that can help shift and reinforce the narratives of the market. Inflation had been an issue at times in 2024 and falling inflationary numbers potentially turns the dialogue from “higher for longer” to “how many interest rate cuts and how fast will the come.”  We will see what Jay Powell says in a few hours on that front.

We are seeing broader participation today in price action. The last month we have seen a few “haves” and a lot of “have nots.” It will be interesting to see what patterns occur outside of tech in the coming days. It looks like this weekend’s Trader’s Report is likely to have numerous robust setups.

Have a fantastic Wednesday!

Small Caps (/RTY)

The market has not enjoyed broad participation in the last six weeks. Some power candles out there like this one on small-caps that are hard to act on today but could develop in the coming days if the market catches a narrative.

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