Like I thought, the Michigan Sentiment inflation read came down: although, I thought it would ease even more.

• S&P 500 low of the session 3,837 9:58am
• S&P 500 high of the session 3,880 at 10:36am

We got the knee jerk reaction, and trading parameters for the remainder of the session.  

All sectors are firmly in the red, with Energy really getting hit, while Utilities are faring the best.

The bias is to the downside. But there are less reasons to panic - although the herd is the herd. The market can go slightly above or below these levels, as it's not an 100% exact science, but it is the guidance going into the last hour to 30-minutes of trading. 

Conversely, a move through the low of the session into the close would signal to me "smart" buyers are nibbling. Their rationale would be the same as mine, that the Fed might have to find a way to get out of its hawkish commitment sooner than the mavens on Wall Street think. 

For the most part, Wall Street has bought into the rhetoric. Ironically, that helps the Fed as the market does the job for them.