The Market: BTFD

And quantitative thoughts on tomorrow's CPI report.

Discussion

The S&P 500 has corrected just -2.26% peak-to-trough since its April 1 high, but from an anecdotal read of broad market sentiment many if not most market participants believe the high is in for the year due to reaccelerating inflation, rising rates, and a liquidity squeeze from tax payments into the TGA.

This negativity toward equities has reset sentiment and positioned the market for new ATHs in the coming weeks (if not days, depending on how CPI is absorbed by the market and Yellen/Brainard manage the liquidity withdrawal from tax payments).