CPI update and market view

You got the better CPI today up 0.3% month to month ex food and energy and even the Fed Vice Chair Lael Brainard concurred with her acknowledging the welcomed deceleration.  Yet the market tried early today to rally only to fail miserably.  What gives?  The CTA contingency remains a seller in what looks likely to be net short soon.  Hedge funds already have the lowest net exposure in years in the 10th percentile.  They are 140% gross long and 40% net long.  But as stocks go down they sell down their gross long.  Retail seems to be a net seller as the headline prognosticators are saying be cautious.  Tomorrow is PPI, we shall see what story it tells, likely more of the same.  Bad or peak bad.