Tomorrow CPI numbers for December are out at 8:30 AM Eastern, so be prepared for a volatile day. No matter what the market reaction, the odds favor much lower prices by February/March monthly options expiration. For some perspective, some market reaction vs CPI Reports from recent releases. Here is look at the last CPI report (Nov 2022 out on Dec 13th) juxtaposed against the S&P Oscillator. Note that the S&P fell about 10% in the week following the release of November's CPI, which was regarded at the time as a "good" inflation number. In our SPX Trend Model chart, price has now retraced about 50% of that initial move down from the last CPI report. A breakdown now would all but confirm the onset of Wave 3 at multiple degrees of trend.
