CPI Day Tomorrow, Major Volatility Incoming For SPX. What Way? July 12th Plan
I concluded my newsletter yesterday by writing my general lean for today was that: “We can ultimately keep basing in that 4420-40 range and then take the breakout to 4461, possible dip there”. This is exactly what happened and after basing in the 4420-4440 range yesterday we got the breakout trade and ran to 4461 target, dipped, then broke out late day.
As readers recall, I added to my long from 4420 before the close yesterday and this provided long entry played out fantastically today. Despite this though, two things are true right now: Firstly, ES remains in a large consolidation since the June high, chopping between 4490-4390. This will result in a multi-week trend leg. Secondly, tomorrow is CPI which are notoriously the most volatile, challenging, difficult-to-trade days of the year.
Can ES leave the range? In today’s newsletter, I’ll be talking this, breaking down my approach for trading CPI days via my system and going over the last couple CPI days, then I’ll be providing the actionable trade plan for tomorrow.