This is a daily notebook by Mike Santoli, CNBC’s senior market commentator, with ideas for trends, stocks, and market statistics. Stocks remain in the “regular pullback” zone after rallying sharply off June lows and resolving some overbought conditions. But reversals in some of the key drivers of the recovery are testing the strength of the ice. Treasury yields and the US dollar index have stabilized again on softer US consumer prices and hopes for an end to future tightening by the Federal Reserve. Yields and the dollar have returned to recent highs, in part because very hot European inflation data sent bond yields soaring there. The S&P 500 remains 1% above the notable potential support that has been noted here all week: early June highs (and March lows) near 4,170. Option expiration can extend daily range in many stocks and indices but is not a strong directional mover, by most accounts. The dollar’s rise suggests that some of the loosening financial conditions that have taken place in recent weeks have been partially lifted, as Fed officials remain firm on their stance that swings will soon be in the market. inflation war. However, their comment is a bit off-putting because this is exactly what they have to say right now even though they hope/expect the major work to be completed by the end of the year at a short-term rate of 3 % to 3.5%. AAPL is a remarkable and somewhat confusing source of power. Both are popular with the most staunch bulls, but with defensive attributes, the stock’s performance relative to the broader market, and the rest of the megacap growth has stretched the poles. historical record and put it at a record 7.3% in the S&P 500. Some fell today but still underperformed. How much more can it do? Big picture: A strong rally with a trending momentum/width display that means a good low, raced to the S&P 500 200-day average and stopped above a cent, now turning around back, and investors are looking to hold onto even bigger bets ahead of the Fed’s Jackson Hole message next week. (A similar dynamic burst higher during the 2011 credit growth/fear that turned into a quick secondary correction before finding footing above previous lows, for what it’s worth.) orderly. The VIX remains below 21, with stocks not far from the highs and the summer weekend coming up. Credit is softer but lacks real stressful conditions.