A jump in CPI sent US stock markets sharply lower on Wednesday, the largest down day since January. Fear the Fed may take action to offset inflation underlies the bearish mood.
The ES e-minis have hit its 50-day moving average which should provide some support but also could be the start of another down leg if cleared.
Bitcoin sold off to below $50K after Tesla CEO Elan Musk tweeted that Tesla would no longer accept Bitcoin payments due to concerns of the increasing use of fossil fuels to run servers that mine bitcoin. Musk said Tesla will resume taking bitcoin once mining uses more sustainable energy. Musk also added that Tesla will be looking at using other, more energy friendly cryptocurrencies.
Colonial Pipeline restarted their hacked pumping operations Wednesday evening and oil prices tumbled around 2.5%. The US East Coast is suffering gasoline shortages, much of it due to hoarding. Colonial says it will take a few days for pipeline operations to return to normal.
Earnings include DIS, BABA, ABNB, COIN, YETI, GOOS, and DASH.
The economic calendar focus is PPI and Claims @ 8:30am ET. Fed speakers include Barkin @ 10:00am ET and Waller @ 1:00pm ET.
Volatility ticked up again yesterday and is elevated. Expect high volatility to continue today.
Size bias is long into the US session open.