Good Evening!
I hope you all had a great weekend. What an eventful weekend it’s been, specifically with the news yesterday! And I know you all know what I’m talking about, holy smokes! What could this possibly mean for the market?!
Well, for starters, we had quite the volatile week, with multiple flips, wide ranges, and two directional action like we had anticipated. We not only broke the bull zone of 5626-5632 and expanded the channel/core areas (5636-5648-5671-5685), we also broke to a new zone (5688-5732). This was a scenario in the event we sustained early on in the week, broke range, and negated odds of downside ahead of CPI. WOW! 5700 hitting early Q3 which definitely implies we could see those bigger expansion scenarios we discussed for the year in the Q2 report. So, does the weekend news contribute a role in this upcoming week? Let’s find out.
If the market decides to save new range/expansions until the 10th-12th, it would align with CPI release. Breaking range on the 2nd/3rd helped negate odds of staying sideways until the 12th-13th-17th. We also entered the new zone on the 3rd, which is great for odds as now we’re in a new zone ahead of CPI release.