Normally I wouldn't see more than a medium-size bump from here (intraday shorts closing, bargain hunters at the close, etc.), but with this market you never know. After the close, AMZN, AAPL and INTC (I'd forgotten Intel before). The chart of the ES still looks ok to me long term, but the charts of many leading stocks look quite damaged.
The outcome from here seems random to me. I see a spike to 5500 more probable than a dump, although the latter wouldn't surprise me either. Unless the world ended - this is a bit too much in one day. Took a few longs on the way up here, but paper handed all of them for a point or two. This volatility is a bit too much.
https://finance.yahoo.com/news/bond-traders-fully-pricing-three-141219813.html Bond Traders Are Fully Pricing In Three Fed Rate Cuts This Year here is the trade, buy any panic on cpi news, rates are ahead of themselves.
Another useless excuse for today's selloff from our highly trusty source #cnbc “The economic data keep rolling on in the direction of a downturn, if not recession, this morning,” said Chris Rupkey, FWDBONDS chief economist. “The stock market doesn’t know whether to laugh or cry because while three Fed rate cuts may be coming this year and 10-year bond yields are falling below 4%, the winds of recession are coming in hard according to purchasing managers at manufacturing firms.” Adam Crisafulli of Vital Knowledge agreed: “The ISM shortfall is just the latest sign of cooling domestic growth conditions, and another sign that the Fed should have commenced its easing cycle yesterday instead of waiting until Sept.”