All kinds of assets are falling From the perspective of the US stock market, it appears that Friday's vol targeting selling pressure combined with CPI hedging .. Several manifestations: The short window RV has started to rise, while the long window RV is still slowly catching up, so the volume targeting of reducing positions and selling pressure has not been fully digested yet Monday and Tuesday are both in this selling pressure window, so both days are high opening and low closing. Today, CPI was also added as a hedge, and the whole market knows that CPI will be crucial tomorrow. Today, the US stock market is focused on real estate/essential consumption/healthcare/utilities, while technology is declining . The green ones are defensive and interest rate sensitive sectors. Today, money is moving from technology to defense. So today can be considered a risk off turn for hedging. It's not a complete collapse. 3 options on SPY ATM IV currently have a hump structure Today at 18%, 6/10 31.5% 6/11 35% 6/15-6/17 23% The IV level is still high in CPI/PPI for two days, with a slight increase in the middle IV level, and the distal IV level has not been purchased yet. So the market is still pricing two days after the event (CPI PPI)... it's not yet time for a pricing collapse Today, the gamma support for SPY 740 disappeared So it slid through 740 The put wall that expires on the day of CPI is extremely concentrated at 720, so 720 is the battle line before CPI (so there was a rebound above 720 just now), and there is another wall below 700 So there's a high probability that we'll end up sideways here today and wait for tomorrow What will happen tomorrow? If CPI exceeds expectations, SPY may break through 720 in volume to find support at 700. If the CPI is still moderate, then this wave of hedging may experience a fierce reversal (740) If it continues to fall, we still need to keep an eye on it Has the IV at the far end of VIX been bought (buying it means the market pricing continues to decline) Has the defense sector (XLP/XLU/XLRE) started to decline synchronously . Has SPY increased its volume beyond 720 At least not yet, it's still a wash up and CPI hedging strategy As for tomorrow's CPI, what is considered an unexpected heat and what is considered mild .. There are probably 100 different opinions among 100 people now It's impossible to predict We can only synthesize the viewpoints of all parties before publishing. Then wait for the data to come out and see the performance of the market