Look Out for a Soft Retail Sales Report...
And for downward revisions to that hot advanced July estimate!
Highlights
Market breadth is poor and leadership has narrowed as the rally comes under pressure — there is no reason to be adding exposure right now
The U.S. economy is set to receive a series of negative shocks, collectively pointing to a stall or outright contraction
Lots of hot air(fare) in the CPI report, as airlines slash their outlooks on rising fuel costs and tepid demand
The past 11 months of price action reflects a classic bear market rally — valuations, ERP, the yield curve and the economic cycle do not flash bullish signals
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