Thursday’s trade was fast and furious and hopefully profitable for everyone.  The ES did manage to hold higher levels as it waited for the release of the latest CPI figures along with the latest Jobless Claims numbers.  Both pointed to higher inflation, in fact the rate showed that inflation has reached 7.5% which is the highest rate in the last 40 years.  That seemed to surprise the ES as the market tumbled an initial 60 points. As the U.S. session got started the ES rallied back to 4582 before starting to decline again.  Once Fed Governor Bullard issued a statement that “The Fed should raise rates 100 basis points at the next meeting,” the ES took a more serious tumble.  I have updated the labeling and have left the completion point for the Intermediate wave 2 correction at the 4586 high.  That suggests that the ES is now in the beginning stages of an Intermediate wave 3 decline.  Within the decline it appears that Minor waves 1 and 2 are complete with today’s decline being the start of a larger “3 of 3” move.  This is where we should see increased acceleration and depth as the “point of recognition” takes over.  Support for the ES remains at 4470, 4445, 4439, 4405, 4384, 4358, and then 4349 to 4336.  Ultimately I suspect the Minor wave 3 may reach as low as support at 3990.  The larger Intermediate wave 3 carries stronger potential of breaking below 3800 and 3700 and finding support at 3622 before completing.