CPI comes in in-line at +0.3% MoM, and 2.7% YoY causing a bit of a pop in US Equity futures and pullback in 2yr yields. largely keeps the Fed's CUT plans intact as Swap market shows an 86% chance of a 25bp Cut. However, this is the largest print in 7 mths, but nonetheless, a largely expected result for today. Used cars only moderately higher, and Owners Equivalent rent at 0.2% is half of last month, so some progress on inflation in housing. and big progress on both of these

Markets are churning ahead of tomorrow's CPI, but Technology is underperforming all other major sectors today and Semiconductor stocks are one of the biggest underperformers. The Philadelphia Semiconductor index (SOX) remains down roughly 14% off July peaks, and until SOX can resolve this triangle pattern with a push higher, this will be a headwind which holds Technology back to some extent. this Triangle is nearing the apex, which means a large move is expected soon. The area at 4818-25 looks important as support, and as long as 4770 is not broken, SOX's technicals will be Neutral in the short run, not bullish or bearish. For now, today's -2+% decline looks to test the bottom of this Triangle into tomorrow's CPI print, so this is an important chart to keep an eye on to give clues regarding the state of Technology as a whole. For a Bullish breakout of SOX, price needs to eclipse 5143.

IWM 0.47%  has now closed down from its opening price on nine of the last 10 trading sessions, down for 5 of the last 7 trading days, yet has merely given up 50% of the rally from mid-November. Thus, while it has weakened at a time of Large-cap Tech strength, i view the recent consolidation as being pretty benign and not all that meaningful. TD indicators show IWM to be one day away from generating a TD buy setup, and my expectation is the the maximum amount of downside happens to 233.6 before this starts to turn back higher. Overall, tomorrow's CPI print very well could prove to be the catalyst for the low to this minor pullback in US Equities that's occurred, and from an absolute basis, IWM is getting to a very attractive area of support which should occur this week.