SPX Is Basing For A Big CPI Report Move. January 11th Plan
In yesterdays newsletter, I wrote: “I think we likely have tactical, level to level trading ahead here until CPI with the “easy” moves out of the way today”. This was certainly the case for the majority of today’s session with ES spending most of the day chopping, trapping bulls and bears in a tight range before a good late afternoon rally.
Today’s action was expected and its no coincidence why we had such indecision early in the session: We have CPI coming up on Thursday, and CPI has been the single most important technical catalyst for ES. The October major low came on a CPI report, and Decembers high also came on a CPI report. Action until the report is largely noise.
Despite the early chop though bulls did have a major technical success today though, holding the ~3895-3900 level we broke out on Friday. Does it have legs? In today’s newsletter, I’ll be talking how I trade choppy days like today, the big picture view here, and the actionable plan for tomorrow.