A flat start in US stocks has given way to selling, led by the Nasdaq.
Yesterday's high-flying meme stocks have given much back. The resurgence of the likes of GME, AMC and BBBY were a sign that froth had returned to the market.
Some are also pointing to the Cleveland Fed's CPI tracker as an indication that tomorrow's US CPI report will be on the hot side. The consensus is 8.7% but it points to a 8.8% reading. That said, some of the core metrics in it are a touch softer than consensus.
In any case, the consequences of a hot reading will probably hurt the market more than vice versa.
In terms of technicals, I don't love using a Fibonacci retracement in this situation because that early-June bounce makes it messy but a failure right in the 50%-61.8% range would make sense if this is bear-market rally.
