1st Red Day in 5. SPX is Setting Up For CPI On Wednesday. July 12th Plan

After putting in 5 straight green days for the first time this year, ES put in a dip today, then ultimately spent the entire day consolidating after around the 3855 level mentioned in last nights newsletter.

Market likely is in some sort of wide holding pattern ahead of CPI Wednesday, which should be a core catalyst that will help settle what the next sustained directional move is (after the initial standard trapping, of course). While ES did hold 3855 support all day today, I would not describe this necessarily as a win for bulls. The 3855 level was quite important (as I will discuss today) and failure to push off it decisively is not ideal action.

In todays newsletter, I will talk about the two key patterns that will likely drive the next trendy move, how I broadly thinks this shakes out, and what the risk/short triggers I’m watching are if we see more correction.