Tomorrow's The Big Day...

Today's drop may look scary but, in case you have not noticed it yet, it merely took the market down to the 9 Jan low, back down to where the market started going sideways. Where it is really going to go really depends on 2 things:

1. CPI numbers turned in lower than expected like the PPI did today.

2. The Fed throw in a rate cut immediately following the favorable CPI number.

I am against a rate cut for the sake of saving the market but I think that's what the Fed is going to do anyways if CPI numbers convince him that inflation is not yet a serious problem. (Yes, he's just kidding himself... the inflation situation is clearly very bad right now evident in the flight to gold.)