After consolidating into Core Consumer Price Index (CPI) on Wednesday, the S&P 500 (/ES) broke out to higher levels. Let’s see if it can hold.
Market Overview
If /ES does hold $4,212, it could work its way back up to $4,260. The next target will be the 200-day simple moving average (SMA) at $4,329. If /ES fails at $4,212, it may pull back to either $4,189 or Point of Control (POC) at $4,136.
Exploding into CPI news on Wednesday, the Nasdaq-100 futures (/NQ) dropped to its Point of Control (POC) at $13,271. If /NQ continues to pop on Friday toward $13,356, it could fall, break $13,271, and possibly drop to $13,150.
Continue to pay attention to the relationship between the Volatility Index (VIX) and /ES for a potential pullback as VIX holds $20.
Potential Setups
Many setups have unfolded, one of them being COIN. After its rally on earnings Wednesday, it dropped back to $85. See if it can find its feet, pop toward $88, and fail down toward $79.
SHOP finally broke through its zone above $42, and then dropped back under the zone to $39. If it breaks $40, our next target is our prior CPI top of the zone at $38.
I’ll be live in the Simpler Day Trading room this week. Tune in to trade these setups with me live and look for more potential opportunities in the market.
Stay Focused!