Hello Everyone,
Tuesday Comments: Yesterday we posted a triangle pattern in the trading community which suggested one more move up (which transpired overnight prior to the CPI report). I also posted a SPY daily chart showing supply zone just below 415 which was tagged pre-market in conjunction with overbought readings. On the report, the SPX traded down 100+ points in a few minutes and then continued down another 100 points. Today, the ES range exceeded 225 points and marked the largest selloff of the year. For overnight/tomorrow, I'm watching resistance on ES 3970-90 (remaining below target zone 3880-3900) with next resistance above 4010. Buckle up.
Thursday Comments
: Another lower low with the indices unable to take out a resistance level. Today's early bounce stalled around yesterday's high (3960) and then moved down (lower low) , bounced (lower high) and then back down (lower low). The formed a falling wedge (with positive divergences) and then bounced right into the close. However, after the close FDX warned (Big Miss) and stated weakening demand all around the world (US Included) as demand is being curtailed for goods (the Fed's mission) and then ES fell another 25 points after re-opening. Bears have the ball going into OPEX. Respect the trend until evidence changes.
Please take a moment to look at the trade ideas.
