With it being the Monday after a 3.5 day weekend, with London closed, and no significant data on the econ calendar, today's marching orders are to act as a placeholder session. It won't necessarily follow those orders, but if any significant movement happens, it will have to draw inspiration from technicals and "new week" tradeflows after last Friday's sell-off was arguably fueled in large part by position squaring and/or profit taking.

The other way to look at it would be to view the 2 preceding days as position squaring following the tamer-than-expected CPI data.  This served to put a crimp in the uptrend that was in progress and Thursday ended up being an opportunity to return in line with that previous trend.  Meanwhile, a relatively strong bounce in oil prices hasn't been helping inflation implications.

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Either way, last week left us with yet another unpleasant example of one huge day of selling that completely erased a previous consolidation attempt that lasted 2+ days.

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