The selloff in equities resumed on Thursday as traders brace for what could be an historic PCE price index. Although the index is expected to decelerate on a YOY basis it is expected to remain high and at a level that confirms the latest twist in the FOMC outlook. The twist is that the FOMC slowed the rate hike pace but upped its expectations for both inflation and peak interest rates.

Thursday?s candle is a warning to the market. Investors hoping for a Santa Claus Rally should be cautious. The market may rise next week simply because of a lack of volume and the "underlying bid". In this scenario, any upswing in prices will likely be met by selling that drives the index down to a new low