All eyes on CPI data tomorrow

The CPI number comes out tomorrow, this could be the next leg down in the market. We shall see. Careful with overnight positions.

 

It's odd that month-old data, which has little to not predictive value for the future, can move the markets so much. Current oil prices will tell you more, since energy prices affect practically everything else.

 

I used to hate the Federal Reserve out of principle but now I love them.

Same thing for these stupid made up numbers

 

Leg down already started.

 

Descending triangle breakout. The crowd loses hope as each rally makes a lower high, when the lower boundary is breached, its an all out stamped to exit.

 

Selling was there all day. It just intensified in last 2 hours or so. SPX up/down volume and % on bottom:

 

Look at sqqq chart

 

This could well be a "sell the fear, buy the news (whether good or bad)" event. The market is pricing in bad news already.

 

do you trade off that chart? Is it useful if there is an intraday reversal?

 

Not really a leading indicator. Use it only for confirmation. Same for A/D line.

Also watch both for NYSEComposite, NDX100, NDXComposite and R2K.

Plus $TICK for program buying/selling.