The stock market has been trying to liberate itself from the clutches of the bond market all session, and for a moment, it looked like it could happen.  But bond yields are higher and have been relentless.  Moreover, the CPI report will come in higher than consensus (the setup) and talking heads will go into a frenzy about the Fed needing to crush the economy.

Even with all of that, this market is showing more spunk and signally it is oversold. At some point, the headlines will shift and consensus will be more realistic.

But keep in mind, the U3 number is what the Fed is focused on and climbed enough that today stocks should be higher.

This doesn't mean the war is over.  But I suspect inside the Fed there is talk of stepping down.

In fact, Boston Fed President Susan Collins broached the topic today - while hinting at a higher terminal rate, she wants to slow the pace- that would be

welcomed news for stocks. 

Have a great weekend.