I think there is going to be a very large amount of volatility...

I think there is going to be a very large amount of volatility the next few days with the inflation data due tonight 10:30pm our time.

What will the inflation data show? The White House likely already knows the figures and made a statement that the data would be "highly elevated", but also said the reading was already 'out of date'. Try and make sense of that....

I think the White House may be attempting to get ahead of what could be extremely bad inflation figures by pointing out that commodity prices have started falling in July and therefore the CPI figures to end of June mean nothing.

White House statement from last night: https://www.bloomberg.com/news/articles/2022-07-11/white-house-foresees-june-inflation-reading-as-highly-elevated

If it's true that the inflation data is going to come in worse than expected, then we should expected a significant amount of market volatility. My best guess would be a rather large single day sell down (as much as a 4-5% red day as people panic). But it also wouldn't surprise me to see a bullish engulfing candle on the following day as investors realise that the worst of the inflation is already behind us (i.e. those June CPI figures are already old).

Economist expectations are for a 1.1% price growth for June 2022 or 8.8% year on year increase to end of June 2022.