[Re-Send] New ATHS For SPX, But Will CPI Tomorrow Spoil The Party? Oct 10 Plan

NOTE: The original version of this sent 10 minutes ago was missing the chart.

Patience paid off in a big way to today, and ES finally made a new ATH. After a 370 point September rally, ES spent the last two full weeks doing what it frequently does after a large rally: Consolidating and building out a textbook bull flag with its characterstic flag pole (the 370 point rally into Sept 26th) and the characteristic flag (the base we spent the last 2 weeks in). This range has been 5734-40 to 5805. Incredibly, support of this range had been tested and/or Failed Brokedown 15 times in this span.

I spoke about this on Friday at 4pm, writing: “Generally, I see 5805 to 5740 as being a massive consolidation range from here (flag). This could very easily fill out more - even for days so do not be shocked if we retrace all the way to support again Monday”. On Monday, we sold down to support of the range.

Then after that? On Tuesday I was looking for a push back up the range, writing Monday at 4pm: “Bull case tomorrow: No change. 5734 to 5805 is a large consolidation, and this consolidation is a bull flag. The bull case is that we just work this back up to the upside. This would just see ES work back on up the range again. This would mean pop back to 5786-88. Possible dip there, then tackle bull flag resistance 5805. If this flag breaks out, we see a new ATH to 5846 minimum but very likely all the way to 5886+”. Right at the close yesterday, we arrived at 5805 for the full round trip. Then today, we headed to ATHs and tagged the 5846 target.

Tomorrow however, is CPI day, and CPI can notoriously throw a wrench in things. What will tomorrow bring? In today’s newsletter I’ll talk this, I’ll do a deep dive into the classic failed breakdown - my core setup - we had on Monday evening at 630PM which got me long into today (provided to readers into advance). Finally, I’ll discuss the actionable trade plan for tomorrow.