Inflation Breaks, Santa Rally Targets SPY $690+

Michael Esther
12-19 16:13

Inflation is breaking and Santa is coming early first target $SPDR S&P 500 ETF Trust(SPY)$ $690+ 🎅

This report quietly flipped the FED’s calculus:

• CPI YoY: 2.7% (down from 3.1%)

• Core CPI YoY: 2.6% (down from 3.0%)

• Core CPI MoM: +0.16% (nearly HALF last month)

Add this:

• Jobless claims still elevated at 224K

• Philly Fed at –10.2 → growth is cooling

Translation👇

Inflation is decelerating without demand re-accelerating.

That’s the Fed’s dream scenario.

Lower inflation + softer growth = more confidence to cut rates, sooner and deeper.

Liquidity expectations rise → multiples expand → risk assets melt up.

This is how Santa Claus rallies start:

Not with euphoria

but with falling inflation, soft data, and a dovish Fed reaction function.

Its not too late to dip buy.

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