Good morning traders!
I hope everyone had a great session yesterday and are ready to prepare for todays session!
Major day as we have CPI releasing 1 hour before the open.
In todays Newsletter I will cover my thoughts on levels and current macro economics on my radar.
Before we begin, let’s touch on what transpired yesterday!
Yesterdays Recap
What a session we had yesterday!
Market sold off before the open nearly hitting my 3823 target. Once I saw price action at the lows I had strong confidence they were going to hold this market bid for a move back to yesterdays close then 3930. From there I sent out a LIVE update in telegram on looking for a move over 3962 for a move back up to 3930s. See below.
This worked out great as we not only rallied up to 3930 but we continued all the way up to 3940 for a 78 handle rally. Overall the session went as planned and we now sit at 3915 at the time of this post, 1 hour before CPI is released.
Last 2 CPI releases (ES)
2/14/23
Open: 4158 High: 4186 Low: 4132 Close (15min): 4137 Range: 49
1/12/23
Open: 4988 High: 4007 Low: 3954 Close (15min): 3979 Range: 53
Implied volatility for todays release comes in at 1.5-1.8% which is 60-72 handles in price.
The recent sell off 4051 came when Powell was speaking and made comments on disinflation. With this being said, I think a flat print will spark rally to retest sellers at 3970s. Another print coming in hot (higher) favors move down into low 3800s. Unless we see an extreme print I think this session will be balancing.
Some expectations that I have seen this morning over on Twitter/
