Afternoon Notes – 3/10/2022

Good Afternoon:

• The inflation report came out today at 7.9% and within expectations. Still, it was the highest rate in 40 years. The number did not reflect recent commodity or wholesale inflation spikes. It will get worse.
• A 30+ VIX is supportive of daily SPX ranges between 1.50-3.00%. However, the indexes are relatively stable in comparison to underlying components which are actually very volatile.
• There was no follow-through to yesterday’s relief rally, so it appears that the market awaits the Fed meeting and announcement next week.
• The S&P 500 Index stayed within predicted ranges for the day.
• We were able to capture a nice trade for the day trading subscribers from the Weekly Expected Move low at 4200 and cashing it in near the close around 4262.
• The WEM low held its ground all week and likely guards further downside into the close and expiration tomorrow.
• Absent any other catalyst, the market is status quo, sandwiched between 4200 and 4300  for now.
• I will update the numbers in the morning.

A.F. Thornton