Inflation blows out to a 40 year high, markets sell off, then mega rally on a HFT glitch and short covering. Strange days.

Thursday stock plunge to mega rally was based off two things, lead by one reason, High Frequency Trading systems glitch on a short cover that set the market scrambling to cover more short positions, this was NOT a liquidity rally at all.  As noted on the chart above with the Volume depressed throughout the rally, only spiking at the tail end of the market trading day as institutional investors began buying up shares on a greed play.

The other underlying issue here is of course Wall Street and the banks still calling a recession and when the Federal Reserve will so call "pivot" from hawkish to dovish on their rate commitments to reign in inflation.  Admittedly, the Fed has been ambiguous and hard to read, yet the recent spike in the Consumer Price Index and oil price are showing no signs of a peak in inflation.

Core inflation highest since 1982.  A 40 year high:

1982	9.3	9.1	8.8	8.9	8.7	8.6	7.6	7.1	5.9	5.9	5.3	4.5	7.4

                                                                                                       Sept 1982

2022	6.0	6.4	6.5	6.2	6.0	5.9	5.9	6.3	6.6

                                                                                           Sept 2022