This week’s technicals lead the market as it broke down.
On Friday, two economic reports end the week.
The Producer Price Index (PPI) will be reported at 8:30 a.m. Eastern, followed by the UMICH Consumer Sentiment Index at 10:00 a.m. Eastern. The UMICH report provides insight into overall consumer sentiment and inflation.
As mentioned in Monday’s newsletter, the S&P 500 (/ES) was sitting at a bigger-picture trendline. /ES rejected the trendline and has since rolled over. Pay attention as a newer structure is forming near the 21 exponential moving average (EMA) at $3,965.
Check out the video above to get a breakdown of my critical levels and possible scenarios on /ES as it approaches a new structure.
Stay Focused!