Big Volatility Incoming For SPX; CPI Tomorrow. June 13th Plan

As readers know, I had been away for a couple days and my last full newsletter sent out Wednesday was entitled: “Will SPX Get Its Routine Thursday/Friday Rally?” The answer was yet again unequivocally yes and on Thursday morning ES set a low by putting in my core setup (the failed breakdown) then rallied 80+ points.

I identified this transient day of week tendency about 4 weeks ago as readers recall whereby ES very reliably rallies on Thursday and Friday and the last three weeks in a row this tendency has delivered 123 points, 126 points, then 60 points respectively with Thursday/Friday squeezes. I said last week though that this week is possibly the last week we see it, as we have CPI tomorrow and FOMC Wednesday. This will be a very difficult two days of trading with the most complex events of the year back to back.

As discussed extensively, ES broke out of a 4 month range June 2nd, starting a new leg up and its been buy dips since as ES has provided a highly lucrative trend. Can it keep going after CPI? In today’s newsletter I’ll talk this, I’ll be talking by core setup (the failed breakdown) that yet again setup a long squeeze today, then provide the actionable plan for tomorrow