Market Frets Slightly Over Inflation Data

The market is slightly lower in early trading on a CPI report that showed inflation rose more than expected in November. I would be surprised if inflation continued to rise in the face of an economic slowdown, energy prices notwithstanding.

Citigroup (C) had its long-term rating downgraded by Moody's, which weighed on the financial sector. But the brokers bucked the trend, and the XBD was the first index to rebound this morning.

Asian markets were lower overnight, as is the Yen, which is a slight positive. The 10-year yield is rising on the CPI data, sitting near 4.23%. But the positive sloping yield curve is a good sign, imo.

A lot of market leading stocks are actually up today, which is a good "tell" for what may be in store for the day. Yesterday, the market was able to erase its early losses. I think the same could occur today.

I don't think people want to get too "long" ahead of the weekend, but the action is constructive, and helps to work off the recent overbought condition about which I spoke. I still think we will see further upside into year-end, once said overbought conidition is alleviated.