Just Being Honest…

This sector is starting to scare me.

Action to Take: Be Vigilant with the S&P 500 at 6,100.

Expectations meet reality this week as Wednesday's CPI report is the final hurdle before next week's Fed meeting.

While rate cut optimism remains high, with CME Fedwatch pricing an 86% chance, stronger-than-expected inflation could prompt the Fed to reconsider its path forward.

If the CPI reveals persistent price pressures, particularly in the core reading, it could challenge the central bank's easing trajectory.

Meanwhile, this morning's more pressing news is China's antitrust probe into Nvidia. Monitor NVDA closely, as any significant weakness could send shockwaves through the broader market, given its outsized influence and pivotal role in the AI boom.

If things escalate quickly, watch for reversion opportunities off the 3rd standard deviation band of Nvidia’s volume-weighted average price, which could signal a short-term bottom for the tech sector.

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Momentum: We start the week with positive momentum as the…