However, above 4400, the market is “overextended” temporarily at least until the end of Thursday when volatility from PPI and CPI reports disappears… Although the auction wasn't too large, it created clear conditions for buyers to take profit and the market also began to be “over-extended”. With upcoming PPI and CPI reports, end-of-day de-risking is entirely possible.
Market opened Thursday's trading session with fairly stable sentiment as bond yields continued to retreat from highs. SPX fluctuated strongly trying to touch the 4400 call wall in the first 30 minutes before the market noted a clear decline in supportive liquidity from buyers compared to yesterday, pulling SPX back before finding support at 4350.
