Todays inflation data really put the wind up the market and drove resource sector stocks down hard. Such as it is, when you’re looking for upside volatility you also need to contend with the same volatility to the downside. You can’t have one without the other. Days like these are never fun. We mentioned yesterday that the Type-A Bearish Divergence was still a concern so in some respects, at least from a technical perspective, todays weakness should not be too much of a surprise. We can safely say with almost 100% accuracy is that divergence halts further strength. What we don’t know is whether we get a sideways stall or a sharp reversal. I would not say we’re at that ‘sharp reversal’ point just yet but todays weakness suggests a few nervous traders out and about.