Alternative Path

[gdl]

Not my call so far. I didn't think the 3910 area would be held up. Fighting for every support zone is not what i expected today. Thought the pressure to sell would finally break (easily) this current support.

Not sure how we end today but in order for me to see a deep drop by Monday we have to show pressure on the downside today. that means closing at or near the lows of the day.

===============================================================
St. Louis Federal Reserve President James Bullard said rate increases "have had only limited effects on observed inflation," and the Fed needs to continue raising it by at least another full percentage point.

Every single day they have to repeat themselves and every single day the street ignores it. Labor market is very tight. you can't get relief from inflation with that scenario EVER! I mean that never happened before where a tight labor market allowed for softening inflation. It takes a good while to START to SEE the LABOR MARKET soften enough to allow for wage growth to cool and inflation to moderate. This is economics 101. Apparently the street skipped that class.

Will the street react BEFORE the holidays or after? if after it certainly can't drop hard before new years. the PPT would have a heck of a job holding the market together that long if the data supports higher inflation. AND we will get a slew of data before the new year. Seems the FED is trying to TALK down the market here. Not having much success so far.