As discussed in Monday’s newsletter, there were many important economic reports this week.
On Tuesday, the Consumer Price Index (CPI) report caused a large pop to significant levels. This triggered massive selling leading into the FOMC announcement on Wednesday.
After the FOMC announcement, Federal Reserve Chairman Jerome Powell announced a raise in interest rates of 50 basis points (bps), to 4.50%. The market reacted negatively to the news and has sold off since.
The Purchasing Managers’ Index (PMI) is the last report this week, released at 9:45 a.m. Eastern on Friday.
Since the majority of reports have been released, our primary focus is the other events impacting the market: S&P Rebalancing, Triple Witching, and SPX roll.
The S&P 500 (/ES) broke the structure at $3,950. If the market stays under Point of Control (POC) at $3,938, see if /ES flushes down to our trendline below at $3,912.
Check out the video above to get a breakdown of my critical levels and possible scenarios on /ES as it heads towards major ranges.
Stay Focused!