Yesterday didn't come out of nowhere/CPI trendline/Earnings comments/Overseas stuff

Yesterday didn't come out of nowhere. 1)A few weeks ago we had the S&P 500 that was nearing 15% above its 200 day moving average, highly stretched and mentioned here. 2)The bullishness has been excessive as seen in the Citi Panic/Euphoria index, Investors Intelligence and AAII. 3)All year there has been a fragile underpinning due to the extreme narrowness of the rally. 4)We have growing global growth concerns and 5)now we finally have investors asking tough questions about whether all this AI spend will be worth the investment in terms of returns. 6)Lastly, we can throw in the yen rally where carry trades are getting unwound. 

Updating the Investors Intelligence survey by the way, as of Friday and thus not capturing yesterday, saw the Bull/Bear spread nearing 50 with Bulls at 64.2 and Bears falling to just 14.9. I've said before that anything above 40 is extreme. 

Considering inflation as transitory was an epic fail by the Federal Reserve as we know and now that inflation has moderated, especially on the goods side, it is not a sign of victory for the average person. To visualize the reason why so many consumers feel so stretched I've charted the CPI index over the past 20 years and drew a trend line. The picture tells the story. 

CPI Index

From Robert Half, the staffing firm, and trading down pre market: