Quite the roller coaster ride this morning with a quick poke up in futures after the CPI print followed by a press down for the New York open at which point it is bought and taken up to 4162 for a day session high against the target put forth in the update last night. Next, another sell cycle for about two hours into near noon. Net, the market isn’t sure what to make of the CPI print. As far as form is concerned, bulls are not in trouble as there hasn't been overlap in the rise up from the low from late last week yet. That said, bears have a series of lower highs to work with and have yet to capitulate. Next resistance that bears need to work with is between 4144 and 4152 which is the last chance for a lower high today.
Can Euro tell us anything? Well, they did sell the 1.0823 resistance for a possible a of (ii) and have dropped back down to support at 1.0728. Better form for a (ii) would include one last move up to at least 1.0823 before ending. That might be enough to allow the equity indices to pop to a new high before reversing course.