Wow, what a day. Thursday had insane price action with a huge gap down after the Consumer Price Index (CPI) reported, a stop at a major zone, and a monster reversal up.
It’s all about economic data this week, and Thursday’s price action is proof of why we want to pay attention to the economic calendar. The CPI report woke up the market and dropped it heavily before the major pop.
On Friday, Retail sales will report before the market opens. News accelerates technicals, so be wary of how the results impact the market.
The biggest thing that was our focus this week was the low of the year at $3,571. We laid out targets below at $3,541 and $3,506.
After the CPI numbers were released, price hit our major zones below, broke back through the low of the year, through the CPI candles and liquidity zone, and hit the $3,700 range we’ve been discussing.
In the video above, we’ll lay out key liquidity levels and zones to watch on /ES and the Volatility Index (VIX).
Stay Focused!