Inflation concerns are in focus as the US 10-year note continues to flirt with 3% and oil prices continue to rise. Google crushed earnings forecasts after market hours yesterday but the reaction remains muted as analysts pointed out that traffic acquisition costs (like last quarter) remain 2% higher than last year. The earnings season is in full swing with MMM, CAT, KO, VZ, UTX, TRV, LLY, HOG, BIIB, TXN, and LMT on deck today. The economic calendar focus is Consumer Confidence and New Home Sales @ 10:00am EST. Volatility continues to settle in around 30 points per day which means there’s potential for the ES to reach 2700 today. However, Size bias into the US session open in bearish so if the bulls are to get something going in the US session, they’ll need to first work through the bearishness.