The CP Lie Inflation Report is Out – Sell the News?

Good Morning:

— Assuming anything the current regime says is true, inflation came in a little higher than expected. The U.S. Dollar and Treasuries strengthened on the news and the S&P 500 Futures weakened.

— This could very well be a “Buy the Rumor – Sell the News Event.” And that could potentially strike a double top in the S&P 500.

— Continued jobless claims reported less than expected – yawn.

— Inflation reports are the big news for the day and week. With retail inflation out of the way, wholesale inflation (PPI) reports tomorrow. Don’t forget that the January Monthly Options Expiration is Friday.

— The Expected Move for the day allows for about +- 32 points and there will be an incentive for Dealers to drive the price back below the Weekly Expected Move High at 4795.75 before Friday’s expiration. Dealers want to return prices to the Weekly Expected Move range where they can avoid losses.

— Local 0DTE (options expiring today) support is 4775 and resistance is 4800.

— Friday is monthly options expiration, as well as the normal weekly expiry. 

— We are moving stops up to 4801.50 for the Daily and Hourly strategies which is a few ticks below the Globex morning low (4801.50).

— If we get stopped out, we will reevaluate at the 5-day line.

A.F. Thornton