CPI Tomorrow: Volatility Incoming For SPX, What Way? March 14th Plan

Thanks to a steady stream of bank related headlines, ES put in a very volatile and complex session loaded with setups since the Sunday open, and for those who thought today was volatile, its likely to get more so with CPI - known for delivering the largest moves - being reporting at 8:30AM tomorrow, in the context of an already volatile regime.

In this environment (as in most environments), only technical day traders armed with accurate levels, a toolkit of setups, and able to react without bias in real time can profit, and the technicals have provided a useful roadmap. I wrote Friday: “My general lean for Monday is we can see a relief bounce attempt off this [3885’ level, with 3935, 3955-65, 3978-80 maximum being targets. If ES to reverse back down to new lows, it would need be that blue box zone around 3965”. This played out nicely, spiking from 3885 Friday to 3972 overnight, rejecting to new lows, then rallying”.

Despite the 130 point trading range though with big swings inside, ES finds itself at the same spot as Friday afternoon, resting on a 15 year trendline. Is there more selling left? In today’s newsletter, I’ll be addressing this + targets, talking my core trading setup, then providing the actionable plan for CPI.