CPI Day Delivers A Breakout Move; Now Where? August 11th Plan
After 9 straight daily candles stacked side by side & the tightest range week of 2022 last week, I wrote yesterday that the CPI was the likely catalyst to wake the market up, and it certainly delivered today putting in the biggest green day since July 19th. Consolidations always end with explosive moves, and we got one today. As readers know, I had been looking for 4210-15 target for week for nearly a month and holding a swing long in various forms, and we clipped it with precision.
As pointed out on Sunday, ES formed an identical triangle consolidation from May 31st to June 9th, also just below 4200. That one ended with a sharp momentum 2.38% breakdown which started the leg to new lows. This time we got the opposite, with a sharp 1.9% breakout to the upside.
The problem? Bulls still have to get through that major, multi-month resistance at 4210, and we spent the entire day trying to chew through supply there. In today’s newsletter I’ll be zooming out to the big picture structures that I am trading, talk a little about how I trade consolidations like we had last week, and where I think we head next