CPI Day Tomorrow: Expect Volatility in SPX. January 12th Plan
As readers know, I got long yesterday morning at 3905 (based on the textbook failed breakdown setup yesterday) and I also wrote it was my intention to hold this until CPI tomorrow. This saw incredible continued follow through today to 3975 resistance and beyond, but ultimately today is noise as tomorrow’s CPI meeting will reveal the true direction.
CPI has been the single most significant catalyst for ES the past several months, and has produced massively volatile, difficult trading. Recall that the October low was set in the hour after a CPI report, where ES spiked down 120 points then rallied 170 in one session. In November’s CPI, ES squeezed 170 points right after, in one session. The last CPI in December, ES instantly spiked 150 points, then sold 150 points in one session, setting a top.
Difficult, highly unpredictable trading is incoming. In today’s newsletter, I’ll talk my approach to trading these, the big picture view, and the actionable trade plan for tomorrows session