Explaining Yesterday's CPI Whipsaw...And Where Markets Go Now
All eyes are on Jerome Powell's 2:30pm press conference today.
Almost everybody knows that CPI came in under expectations yesterday (7.1% versus estimates of 7.3%), fueling a market rally that approached 5% in the pre-market session, at about 8:30AM, when the data was released.
But the action during the cash session was what I found to be far more telling than the knee-jerk reaction that algorithms put in place once the numbers hit the tape.
