Chart of the Day - Monday, December 12th, 2022

Today’s Chart of the Day was shared by Rob Hanna (@QuantifiablEdgs). Tomorrow is the highly anticipated November CPI report where market participants will react to the latest inflation data. The market has been holding its breath for this report, considering the S&P 500 is essentially unchanged since last month's report (excluding today's rally). You might remember, the S&P 500 jumped 5.54% on last month's report, which was its best day in more than two years, and its best CPI day ever. CPI days have become increasingly volatile throughout the year as inflation has become a growing concern. Rob points out that the S&P 500's Average True Range on CPI day has been twice as large as any 'normal' day this year. Pay attention to how the market reacts tomorrow as investors digest the final batch of inflation data this year.