Market Saved at The 50dma Yet Again. CPI Tomorrow. Jan 12 & 13 Chart

Today, the core catalyst was Powell speaking and ES did what it often does around major news catalysts: Faked out one way, then reversed. Price lost critical 4650 support, dropped around 20 points, then after Powell speaking at 10am reversed and put in my favorite setup - the fake breakdown. As soon as 4650 recaptured it was a fairly clean 50 point run to the upside. Importantly, the 50dma was yet again defended and for a year now ES simply cannot stay below this. Coming up tomorrow at 830AM though, we have CPI coming up, and I would expect more trappy, volatile action. Here’s what I’m thinking (chart and analysis below)