CPI Tomorrow - Volatility Incoming in SPX. What Way? November 14th Plan
On Thursday, ES managed to put in the only red day since October 27th, and bears were severely punished for it, with an 80 point monster short squeeze on Friday, extending the streak to ES for 9 of the past 10 days green, which is the largest streak since October/November 2021 (where ES went 19 green with only two red).
On Friday though and into today, ES finally bumped into resistance, and its no coincidence where. I wrote on Friday: “We are closing right above the single most significant resistance in ES at 4418-25”, and this level as discussed is the core downtrend line from the August high. ES certainly agreed with the importance of this level, and we spent nearly the entire day magnetized to this zone - popping above and below multiple times. I wrote on Friday “we just had a monster leg up, which means it is now time to step back and let price discovery unfold” and we spent today doing just that.
ES spent today resting/consolidating just above major multi-month resistance in preparation for the real fireworks tomorrow - with CPI being released at 830AM. Can bulls keep the run going? In today’s newsletter I’ll talk this, go over the setup that caused today’s/Friday’s rally (its my core pattern), then discuss the actionable trade plan for CPI tomorrow.