In last nights newsletter, I said that a clear of 4195 would be the trigger for a squeeze into the 4260-80 resistance zone and squeeze it was: ES put in the biggest green day since June 2020. Another reminder today why you can’t hold simple labels like “bull” or “bear” and just need to trade the levels both ways in these conditions. “Bears” not managing risk at supports will get violently short squeezed, and its been true for bulls also.
We have a very interesting intersection coming up tomorrow between 1) A major news catalyst in tomorrows 830AM CPI report and 2) Price now being *yet* again at that multi-month, only level that matters, of 4260-80. There is a potential here for quite an explosive move, and some likely trapping first. Here’s what I’m looking for - and where seasonality says we go from here (hint: Its very clear)