Hello Everyone,
Monday Update: Well, the the SPX did indeed make make a new high today (after forming a triangle pattern on Friday) but as expected it soon faded with the SPX falling nearly 60 points during the session before bouncing some into the close (warning shot for the bulls). However, the SPX has yet to break down from its prevailing channel so let's continue to monitor this week. Support and resistance levels are posted as a sticky post at the top of the trading community.
Tuesday Comments:
Following yesterday's reversal/bearish daily candles, we did see some downside follow through into the lower end of the recent range. The SPX has traded in a 100 point range for eight days and an even tighter range of late. Seasonally, this is the Summer Doldrums often characterized by lower volume and volatility. With that said, tomorrow we have the CPI report which could spurn some movement. Fundamentally, things are deteriorating with consumers struggling with inflation and certain companies beginning hiring freezes or layoffs. One thought, don't be overly upbeat if the CPI comes in below expectations as it's still extremely elevated and likely sticky. As always, continue to trade what's in front of you in conjunction with your plan.
Please take a moment to look at the trade ideas.
