MARKET PULSE — MAY 13, 2026
PPI joins CPI in the hot column, megacaps carry the tape, and the breadth question gets sharper. Welcome to the Market Pulse — the daily breakdown of what mattered in the tape, what Tydeflow detected, and what's worth watching next. WHERE THINGS STAND SPY is trading around $743, near the day's high after dipping as low as $735 this morning. The market is choppy — small intraday range masking real movement underneath. Breadth is weak again. Only 143 stocks in the S&P 500 advancing — about 28%. Yesterday's 22.8% advancing tape extended into today. Two straight sessions of narrow leadership while the index level hovers near records. WHAT JUST HIT Wholesale prices (PPI) jumped 1.4% in April — well above the 0.5% expected. Annualized that's nearly 6%, the biggest jump since 2022. This is now the second consecutive hot inflation print. Yesterday's CPI came in at 3.8% annual. Today's PPI confirms producer-level inflation is also accelerating, not just consumer prices. The Fed math has changed. CME FedWatch is now showing a 30% probability of a rate HIKE this year. Not a cut. A hike. That's a meaningful shift in what the market has been pricing. THE TAPE STORY What's interesting is HOW the market is absorbing the PPI shock. Despite hot inflation, megacap tech is rallying: → Nvidia, AMD, Apple, Tesla all higher on the day → Chip sector up 3% as a group → NVDA earnings on May 21 has analysts upgrading: BofA $320 target, Oppenheimer $265 → AMD's run is getting questioned (Daiwa downgraded to outperform from buy on valuation) The Mag 7 are doing all the work. Everything else is bleeding. Sector reads: → Communication Services: -1.2% → Consumer Staples: -1.0% → Utilities: leading losses → Energy: mixed, oil pulled back from yesterday's highs WHAT TYDEFLOW IS SHOWING Quiet day for ENTRY signals across most watchlists. That's the system working as designed. When breadth is this narrow and the tape is this choppy, flow detection requires multi-factor alignment that rarely exists.