Stocks Obliterated as Inflation Data is Priced in

Stocks got slammed as investors in the APAC session price in soaring US CPI inflation data released on Friday, which came in at a 40 year high. The markets are also reevaluating the Fed's rate hike trajectory in light of these numbers. Barclay's anticipates a 75 bps hike now, and bond yields have soared. The S&P 500 has gotten crushed, slamming through all of our support levels in the 3800's and the 3900's. We have even breached the low established with the head of our inverse Head and Shoulders pattern from back in May, and dipped past relative lows from the end of May after the inverse H&S failed. We are currently hovering just above 3792. If we break this level, we will test lower levels in the 3700's starting with 3758. The Kovach OBV is on a solid bear decline but appears to be starting to level off, suggesting we may range a bit and find footing at current levels. We will meet strong resistance from relative lows at 3867 in the event that stocks pivot off current levels.