Regional Bank Overhang. CPI Tomorrow

Issues persist for the market.

Technical Edge 

• NYSE Breadth: 58% Upside Volume

• Advance/Decline: 47% Advance 

• VIX: ~$17.50

The SPDR S&P Regional Banking ETF (KRE) opened Monday’s session higher by more than 2.5%. By the close, it was down 2% on the day. The regional banks remain a worry and honestly, they should! Here’s a great visual.

Yesterday was a flat, low-volume, traction-less kind of session. We didn’t get many setups out of our individual stock trades (that’s okay), while the ES is leaning on an inside-and-down daily rotation as it flirts with Monday’s low of 4137.50 ahead of the open. 

Tomorrow’s CPI number should rattle the cage a bit. Soft numbers may have the market truly believing the rate hikes are down. Hot numbers are going to cause some issues (as Fed will be in a tough spot with its rate hikes and as the regional banking system is stressed). 

S&P 500 — ES 

• Pivots: 4153, 4137

• Upside Levels: 4165, 4175-80, 4198-4206

• Downside levels: 4112-4120, 4100, 4075-80

The big range remains 4200 on the upside and 4075 on the downside. 

SPY