CPI numbers are in and you can now count on everyone debating the “pace of slowing”. The headline number for January was 6.4%, which barely snuck in under the December print of 6.5% and was higher than the consensus number of 6.2%.

Core came it at 5.6% vs. 5.5% consensus and 5.7% previous.

Lower is lower I suppose, but when you see it graphically, you can’t help but focus on the slower pace. Are we starting to stall here? That will be the new worry occupying minds for coming days, at least until Thursday when we get the PPI numbers.

Long way from the target of 2%, so any interpretation of leveling off at all will not sit well.

The month over month numbers were in line at 0.5% overall and 0.4% for core. The overall compares to a 0.1% increase in December.

Futures were all over the map before the open trying to determine whether this report was positive or negative and that uncertainty has continued during the morning session.

I am still watching the 410 level on SPY. I have put that at the top of the trading range for quite some time and we are loitering there as we speak. If it can’t find support here next stop is likely 405.

The week is young and this will just take time to play out. Much more on the docket.

On a positive note, volatility remains low with the VIX back under 20 and overall breadth is positive with advancers leading decliners almost 3:1 on the NYSE at midday.

All of the above tells me things are being digested orderly. Nothing crazy. Yet.

To be continued…

As a refresher, we will not see another CPI until March 14: