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Assessment: CPI comes in at 4.9%, but the market response has been rather muted so far. It popped from being in red, but curious how this moves after the open. Perhaps the reason for the muted response is traders seem to be moving past inflation.
Employment is now becoming the larger concern for the market…along with the debt ceiling. The debt ceiling issues are one of those things that if not resolved would move the market like crazy HOWEVER every seems to expect something to be done and thereby it will be a non-issue. So, back to employment. The Fed needs a cool labor market to fight inflation, but if that labor market gets too cool, now there is another problem out there…unemployment gets too high.
The market did very little the past two days. The candles for Monday and Tuesday were laughably small (bodies and wicks). Perhaps everyone was waiting to adjust based on the reporting today. We shall see!
Good luck in your trades!