"Sell The Bounce" Still On: Can CPI Data Tomorrow Change That?
When I sent my newsletter out yesterday evening, I noted that price was 3994.5, and today as of writing it is 3988. It would seem like a quiet day but in reality ES made *multiple* 50-100+ point swing in the past 24 hours. If you aren’t trading this market as a tactical, unbiased, level-to-level day trader, your not making money and it is that simple.
Despite this, yesterdays loose guideline played out well where I wrote: “For now, my bias is that we sell down to 3945 then attempt an oversold relief rally leg back to 4000-4020 at least, probably 4055 though. If its to continue lower, that would be the spot and its not a bad zone to take a stab short”. We rallied there and sold 100 points down, to end up in the same spot.
From here, all eyes are on tomorrows CPI number which will determine which way this resolves. Like every CPI day, it will probably involve a few trap moves 1st. The setup is here for a bounce - in today’s newsletter, I will get into how I think it plays out, and my philosophy to trading these types of markets