If you have followed by recent posts you would know that I felt a retest of the ATH was likely and that the 4500 level would act as a magnet for price. We are now back at the ATH and about to find out if I'm right about the 4500 target.
The market always finds something to worry or get excited about. This changes like proverbial underwear. In the recent past it was trade wars, election outcomes, stimulus or taxes. Right now the market is obsessed with inflation and interest rates. Given that all eyes will be on the upcoming CPI numbers on Thursday and the PPI numbers on the following Tuesday. As always there is only 3 things the market can do going into these events. Price can either run up, fall back or chop. Monday morning's price action should give us a feeling as to which way things will go.
I would not be surprised to see price run up to the 4500 level pre announcement then sell off on the news or sell of all week the rip higher on the news. The only plan I have at this point is to trim current positions if price make an early run up into the 4500 area. If price drifts lower or chops I will do nothing in the early part of the week with expectation that the numbers will offer a catalyst to drive price up into the 4500 level.
Please check out my previous posts for context. I'll update the chart as things play out. Good luck and happy trading.
The market always finds something to worry or get excited about. This changes like proverbial underwear. In the recent past it was trade wars, election outcomes, stimulus or taxes. Right now the market is obsessed with inflation and interest rates. Given that all eyes will be on the upcoming CPI numbers on Thursday and the PPI numbers on the following Tuesday. As always there is only 3 things the market can do going into these events. Price can either run up, fall back or chop. Monday morning's price action should give us a feeling as to which way things will go.
I would not be surprised to see price run up to the 4500 level pre announcement then sell off on the news or sell of all week the rip higher on the news. The only plan I have at this point is to trim current positions if price make an early run up into the 4500 area. If price drifts lower or chops I will do nothing in the early part of the week with expectation that the numbers will offer a catalyst to drive price up into the 4500 level.
Please check out my previous posts for context. I'll update the chart as things play out. Good luck and happy trading.
Comment:
ES/SPY made the ATH yesterday. Now I watch the 1.13 fib extension for a possible failed breakout. Price needs to get above 4266 level to gain some momentum. If price fails at that level expect a pull back to the ema cloud before another run higher.
