April 12, 2023

Markets:

S&P 500 futures rose slightly Wednesday as investors turned their focus to March’s highly anticipated inflation report.

Futures tied to the broader market index traded 0.1% higher. Dow Jones Industrial Average futures advanced 78 basis points, or 0.2%, while Nasdaq-100 futures were flat.

The March consumer price index is slated for release at 8:30 a.m. ET. Economists polled by Dow Jones predict that CPI rose by 0.2% in March, compared to a 0.4% gain in February.

The report could impact the Federal Reserve’s rate decision come May. It may also cement the case for a stop to the central bank’s rate-hiking regime.

Minutes from the Federal Reserve’s March policy meeting are also due out Wednesday, and slated to offer further clues into the mindset behind the central bank’s 25 basis point hike in the wake of Silicon Valley Bank’s collapse and the turmoil that rattled the broader banking sector.

Later in the week, the health of the U.S. economy and consumer will be put to the test as first-quarter earnings season kicks into full gear. Banking behemoths JPMorgan Chase, Wells Fargo and Citigroup are on deck, as well as health-care giant UnitedHealth.

Portfolio:

We enter the new trading session holding positions in GATO, ONON, SGH, CLF, and AG.   Such an outstanding period ahead and technical traders need to rejoic with the outlook we have.  We've set our fade area's on the S&P should we begin to see weakness at key technical lines.  As a reminder, Bulls need to cross 4200 on the S&P and hold it!  Right now, all price activity in this market is mechanical as we wait for this weeks events.  Just range trading, no traps set yet.  Stay tuned, we begin to receive key data points today.  Let's have a great session.