The indices were hanging on to slight gains in anticipation of this morning Consumer Sentiment reading. Traders were expecting to see a reading of about 72. The actual reading was way off, coming in at 66.8. That is the worst reading we’ve seen in a decade. This follows Wednesday’s Consumer Price Index reading which showed inflation had hit a 31-year high. At some point or another, higher prices were going to lead to a more reserved consumer. It appears we’ve arrived at that point.

The rest of the month’s news slate is relatively light. Traders will be most interested in GDP on the 24th, and PMI on the 30th. The next two-day FOMC meeting takes place on December 14th and 15th. Fed funds are now suggesting we’ll see a rate hike by the Fed’s June meeting, and the odds of a second (and even a third) hike in 2022 have also increased dramatically. 

E-mini S&P 500 Dec ’21 Daily Chart
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Bill Dixon

Senior Market Strategist
Bill began his career working with a firm of technical commodity traders specializing in the treasury and metal markets. In 2006 he moved over to Lind-Waldock as a broker. Bill joined RJO Futures in 2011.
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