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Good evening, traders.
The market delivered the bulls a huge gap up open on the CPI print this morning, making the structure we examined yesterday a consolidation rather than any kind of pattern of distribution.
I don’t typically like to make predictions about these big economic reports because in my experience they’re just too hard to reliably predict correctly. That goes with tomorrow morning’s data, too.
That said, I am still under the impression that this is all yet another bear market rally, and I am still willing to try to be a seller. I was immediately stopped out this morning when the market reacted to the data, but I have assembled a new position now (if we react positively to tomorrow’s PPI, I will stop out again).
Now, what to do with the structure. If it’s not a distribution, I suppose we have to do this:
So, I am looking for this to rally to end at some point. Could be here, could be higher, but I’m still motivated to try to sell it.
I hope everyone has a fine evening.