Hartnett: All Eyes On This Indicator, Whose Breakdown Will Confirm A Fall Stagflation Event

One week after issuing a warning about a future market crash should Democrats sweep the midterms, BofA's Michael Hartnett is back to his more familiar ways, and in his latest Flow Show report titled "Those yields might not hurt yet, but diesel", he analyzes the current state of the market, where - in an echo of what Goldman said earlier this week - he falls back to one of his more popular maxims, namely that "markets stop panicking when policymakers start panicking"... and yet, there is no panic anywhere despite the highest 30yr yield since Jun’07 and spiking commodities.

And while oil back at $100/bbl takes headlines, it is diesel - which as we said several weeks ago - is the key real-economy pressure point: shipping, trucking, agriculture, construction, mining all rely on diesel.