Midday market 02/13: Market rallies ahead of January CPI data

The market opened Monday's trading session in a fairly relaxed sentiment with investors directing cash flow back to big tech in the morning half-session. Hedges and shorts continue to unwind right ahead of tomorrow's January CPI report release while options positions across the entire market continue to build up heavily on both sides, causing SPY to have little movement over the past more than 1 week as it remains pinned between the 420 call wall and 400 put wall, moving around the similar range before the 12/12 CPI report was released. However, this time with significantly less hedge and tail-risk.

BLS also released data on changes to the CPI index for the last 3 months of 2022, raising the core annualized CPI to 4.3% in December instead of the previous 3.1%. This change is explained by seasonal factors.