First Look: 2022-12-13
What a morning. The equity indices leap up off the CPI number and then proceed to leak lower through the early morning to such an extent that the E-Mini Dow futures and given back the whole CPI gains. S&P 500 and Nasdaq 100 futures now quite as extreme but 100+ points down from the CPI high in S&P 500 futures is not what bulls had in mind for today. I continue to think that the market is too bullish on the Santa rally concept. S&P 500 futures are currently trying to stabilize around 4071.25 but I wouldn’t be surprised to see a leak lower toward 4041.50 or even 4003.50 later in the day.
For some other context, Euro spiked up on CPI to resistance at 1.0738 is starting to drift back down. Too early to know for certain but I caution against looking for continuation higher as this has appropriate form for a completed v of (c) of [iv].
Net, be careful today and tomorrow. Bad things can happen.