Hello Everyone,

Here's a link to Tonight's Newsletter.

On Tuesday, I showed the divergence on the SPX 30 minute chart along with the falling wedge on the VIX which preceded a retracement.  The SPX/QQQ rebalanced back into Fib support (did not displace lower by taking out previous lows) after a BOS (break of structure upward). Today we saw follow thru back to the upside after yesterday's late session bounce that reclaimed a previous level (valid trigger). Bulls have the ball.

Tomorrow, we have the long awaited CPI report.  Expectations are for CPI to rise slightly year over year, while core inflation remains flat. The SPX has traded within the October 10th range now for 9 sessions (level to level trading has served us well). 

With the current backdrop (volatility), best to focus on fewer setups.

ES Levels Posted in Trading Community (Note: Front Month has Shifted to December ESZ25)

Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night. Consider making a fresh top 4-6 setups each night and put on front page along with existing trades.  My advice is to keep your total ideas to a manageable number (very few in volatile market). Lastly, it's best to wait at times for valid setups to form - sometimes less is more. Big moves tend to occur first and last hour and overnight sessions.

- Steve