Bulls Take Control Pre-CPI. But the Event Is Binary
Can they get one more squeeze going?
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Our View
This whole thing is crazy. The ES rallies and sells off but really hasn’t gone anywhere. On Tuesday, the ES closed 12 points above Friday’s high
I told the MrTopStep forum that there is going to be a major event in the first half of the year and the S&P is going to take out the 3502 low. That doesn't mean there won't be short-covering rallies — there will be — but they will reverse at some point.
We always talk about the ES, but what about the DAX?
The German DAX made a low of 11,830 on on Oct. 3rd, had a really nice reset in mid-December and has been going straight up since, recently climbing toward 15,000. It’s up more than 3000 points in three months!
When the Ukrainian war began, the Dax was at 15,400. We are now within a few hundred points of that level and it makes you wonder, is the DAX pricing in the end of the war?
That is what the market is saying on the charts. For reference, the all-time highs in the DAX is 16,295.
Our Lean — Danny’s Take
There are no major economic releases or Fed speak today. It should be a quiet day in that regard, but that doesn't mean the ES won't be flipping around. Tomorrow we have the CPI data for December. It’s the all-important economic reading for the Fed.
A friend of mine — David — wrote this and I couldn’t help but want to share it:
For more than 50+ years I’ve been trading futures. I’ve always looked for an advantage but there’s far too many traders with bigger bucks than I’ve ever managed under their control and techies who make my years building trading platforms look more like months. That doesn’t mean I can’t think but today, using today’s available tools it’s easier to determine market sentient than ever before. Today’s geniuses, with the computational power of quantum computers together with available AI tools can identify market trends in what amounts to seconds and turn on a dime before you’ve had a chance to blink.
Our Lean: