The market chipped away after falling through a trapdoor at the start of the session.

Much of the action comes from pent-up anxiety that built into a mini panic over the weekend.

Most major indices are moving lower except for the Dow Jones.

This came as the ten-year yield (TNX) briefly hit the 4.8% level, its highest level since November 2023.

Today's session reflects a narrative of a stronger economy, that should benefit cyclical sectors. So, growth sectors and Utilities (XLU) are in the red, while Energy (XLE) remains the frontrunner.

On the economic front, NY FED inflation expectations remained flat m/m at 3% in December. Interestingly, college tuition expectations rose by 1 percentage point m/m to 5.7%.

Notable points:

• Food price expectations rose 0.2 percentage points m/m to 4%.
• Gasoline price expectations fell 0.7 percentage points m/m to 2%.
• College tuition price expectations rose by 1 percentage point m/m to 5.7%.
• Rent price expectations grew by 0.2 percentage points m/m to 5.5%.
• The three year inflation expectations rose to 3% from 2.6%
• The five year inflation expectations fell to 2.7% from 2.9%.

I'm happy to see money coming off the sidelines. 

I just wanted to let you know there is no need for panic. Although we are frustrated with the Federal Reserve, it goes beyond recent miscues.

I'm also concerned with the current administration's actions that make implementing policies Americans voted for more complicated. 

Of course, the better barometer will be how this market closes. 

I encourage you to hang in there and be prepared to be opportunistic.