Headline December CPI came in at 6.5% this morning, right on target.

The reaction in equities has been all over the map, but SPX stands a very good chance of backtesting its 200-day moving average. After that, we’ll want to focus on the DXY, which has backtested a very important trend line and former high.

continued for members…

The bigger picture for the dollar:

Zooming in……note the dashed purple line from 2017, through the 2020 highs. The strong negative correlation with stocks is obvious.As always, we’ll keep a close eye on VIX – which is backtesting the TL from Apr.

Back to the 2023 forecast…

Speaking of which, thanks for your patience while I get this posted. I’ve been dealing with some health issues the past week or so that have sapped my energy level. I hope to get it finished today.