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Stocks Hold Tight Range Following Major Inflation Report: Market Trends
David Russell
September 14, 2023

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Sizing Up the S&P 500

  • S&P 500 holds middle of range near June high
  • 2nd consecutive inside week
  • RSI in middle of range
  • Treasury yields potentially near peaks with double top in 10-year and outside days
  • Potential support at 4444
  • Potential resistance at 4528

Sector Watch

  • Utilities rebound after false breakdown. A signal for rates?
  • Consumer discretionaries, financials take leadership from technology
  • Airlines, semiconductors lag

Key News

  • CPI: Inflation potentially better than appears
    • Headline inline +0.6%. Core +0.3% vs +0.2% estimate
    • Key shelter component (38% of index) rose +0.29%, the least since August 2021
  • Crude oil inventories +2mln barrels as SPR inches higher
  • Brett Eversole of Stansberry: Short interest in 10-year Treasury futures (@TY) creates upside risk in price, downside risk in yields
  • FactSet: Fewest companies cited inflation last quarter in 2 years
  • Financial sector:
    • Citi (C) rallies on job cuts, reorganization
    • Morgan Stanley (MS) climbs after Barclays presentation
    • S&P: Bank M&A highest since July 2022 as confidence recovers
Monthly change in shelter inflation, courtesy of St. Louis Federal Reserve.

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  • Treasury futures:
    • 2-year Treasury Note (@TU)
    • 5-Year Treasury Note (@FV)
    • 10-year Treasury Note (@TY)
    • 30-Year Treasury Note (@US)

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About the author

David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.