Market Sideways Again Ahead of CPI...

The Dow ended up sideways again today, as I have expected in yesterday's post, with a small 35.5 points gain ahead of tomorrow's CPI numbers (see economic calendar). Strangely, with sentiments this negative and oil at record highs, we should actually see the weakness carry through the day into a significantly negative day, especially when CPI is widely expected to be higher than expected due to all the rate cuts so far and the high oil. BUT NO, the market mustered enough strength to come back up positive despite all that negativity and the dangerous number tomorrow. This suggests that perhaps there are more upside than downside for the market to the CPI numbers tomorrow. I will not speculate what the reaction will be. Let's cross fingers and wait for the numbers.