Republic Risk: Inflation Worries Continue

Once again, inflation picked up in September as consumer spending remains robust across the economy. The Fed's preferred inflation drives more questions for the central bank as we approach next week.

RED on the S&P 500 and RED on the Russell 2000

Each morning, we assess the total flows of the market by measuring statistical metrics on a very specific number of stocks to determine broader sentiment and the momentum trend. When these readings turn red, we focus on cash, trade positive sectors, or take inverse positions against indices.

The breakdown in the Russell 2000 has been significant, pushing us to levels we haven’t seen since October 2022 and March 2023 - periods of economic crisis in the U.S. and abroad. This morning, futures are rising as investors keep their eye on Amazon (AMZN) earnings, and we look for a potential squeeze after the selloff in recent days. Remember that Fridays have been the best day of the year for the S&P 500 in 2023.