Futures repeated the same intraday and overnight pattern back to back: selloff after the open, an intraday low followed by a rally into the close, then an overnight rally, only to gap up and sell off again. One thing that was different yesterday is that VIX and VVIX were up considerably despite the afternoon recovery, and breadth was very weak, with three mega cap tech stocks lifting the entire market. CPI initially knocked prices lower, but the market recovered and is now trading around the pre-CPI level.

ES1!6559.5 resistance levels: 6565-6567,6576-6578,6588-6592

ES support levels: 6543-6544,6521-6523,6500-6503

I expect more of the same today. Fed rate cuts don't fix a weakening economy until they get deeper and credit availability propagates through the system. Even if the Fed keeps cutting for months, it typically takes 9–15 months for the economy to feel the benefits—likely alongside additional inflation. After today's CPI, a September cut may be minimal (0.25%), which could trigger a nasty reaction. In that case, the market may front-run the move and start trading lower ahead of the decision.