Two things, the first is that some brokerages are starting to call margin, but it certainly has to fall, and the last fall is still painful.

The second thing, it shows the complexity of the situation. On the one hand, the unemployment rate has not come down. On the other hand, used-car values, a measure of American consumption, plunged.

Shares of used car platform $CarMax(KMX)$ tumbled 22 percent after the company reported results. This is what happens to businesses when high inflation and high interest rates coexist.

Adjusted earnings per share for the second quarter were $0.79, well below year-over-year earnings of $1.72 and well below expectations of $1.40. Sales of $8.14 billion fell short of estimates of $8.56 billion. Profits were particularly weak at the wholesale car business, which missed market expectations by more than 30%.

Analysts attributed the results to three factors: weakening consumer confidence, a rebound in new-car production and higher interest rates.

Used cars aren't just affecting used cars: $Carvana Co.(CVNA)$ , they're also affecting the market for new cars.

KMX earnings are twofold, for CPI and earnings season. It's going to keep coming down from a CPI point of view, but the core CPI is probably going to stay strong, and people can't afford to buy cars but they're still going to pay for services. From an earnings season perspective, lower big-ticket consumer spending, lower non-essential consumer spending, combined with weak iPhone demand, will see a slew of stock valuations slashed.

Another question I don't want to think about too much, though, is that the indicators suggest the market is due for a rebound, but the exchange rate is at its 2020 low. What about the stock market?