QQQs finished dn 1.56% climbing back from down more than 2% in the last 30 minutes. ARKK/IWM underperformed down 4% and 5.6% respectively, in a reversal from recent performance as a hot CPI drove the 2 year up 18bps and 10year up 13bps. Crude finished +1.2%. Overall, weak day and some big moves but QQQs so far holding their 21D as we are entering seasonally weakest part of the year during an election year. Not bearish, but some continued choppiness near-term wouldn’t surprise us.
In hindsight, the r/r for the QQQs wasn’t great heading into the CPI print given the price action yesterday:
An inline or cooler print would have likely continued to drive IWM/ARKK higher vs QQQs
We saw what a hotter print did driving down everything.
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