Morning Notes — Peak Inflation Narrative

The potential bullish equity theme also requires lower levels of equity market volatility. The CBOE Volatility Index (VIX) has descended from a 5/9 peak of 34.75 to 26 today with an eventual move below 20 essentially removing the volatility headwind. The breakdown in 10-year inflation expectations followed the S&P 500 (SPX) break below technical support at ~4,100.  The support zone was actually somewhere between 4,100 and 4,150.  Old support becomes new resistance, and the SPX now sits inside the support zone this morning.  Sustained closing levels north of ~4,150 would support a bullish theme.