Futures are essentially flat ahead of tomorrow’s important CPI print.

continued for members…

It’s an important week for economic data. And, of course, we have an FOMC rate announcement and press conference on Wednesday.

Depending on how the market reacts to the economic news, we could see SPX complete an inverted head and shoulders pattern targeting 5727. There are 14 more sessions including today’s left in 2023. At the current rate, SPX would gain 4.5 points per day in order to tag the Fib 886 at 4667.34 on the last day of the year.

This assumes that tomorrow’s CPI print isn’t so ugly that it trashes the rate cut narrative the bulls are touting.

According to our gasoline vs CPI model, November’s print might be higher than expected – even though future months should be lower in the absence of an escalation in the Middle East.