As per this prediction in yesterday’s video, my prediction of a cooler-than-expected CPI print (check) resulting in a market pop (check) played out. Now just waiting for that 3rd & final component of the call which is for the post-CPI pop to be faded anywhere between today & my vacation which starts this Friday.
While it’s hard to say exactly how much higher or for how long the post-CPI rally might carry, the safest bet for adding to or initiating any new short positions would be on a solid break back down into the 6-week trading range on /NQ & QQQ.
60-minute & 5-minute charts of /NQ showing both the 8:30 am post-CPI spike was well as the marginal & still divergence high below.
NQ 60m May 10th
NQ 5m May 10th