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Good morning, everybody. Today is Wednesday, October 14th, and we come off another insane day in the trade plan. We started the day with a beautiful smack from 7862, which took us down 35 points directly into the massive Daily from the trade plan title, 7837. Price swept those lows, grabbed liquidity, and pushed up through the entire afternoon session, taking us all the way back to 7860 — the previous Weekly Value Area High and our major pivot right now. It was a spectacular day for the trade plan, and our members captured insane profits. Congratulations to all those who took advantage of yesterday’s goodness.
A Note on Today’s Market:
News: We have Red Tag news this morning, and it’s one of the biggest days of the week and the month: Core CPI at 8:30 a.m., both month-over-month and year-over-year. This is guaranteed to be a huge day. On top of today’s massive news, we have more news tomorrow, so the market is primed for huge rotations and we want to be ready.
Volume: Relative Volume is extremely suppressed at minus 32%, but we’re going to ignore that this morning. The market is simply waiting on the Red Tag news.
Range: Expected range of 54 points. We have only moved a total of 25.5 points in the overnight session, leaving approximately 28.5 points above or below the overnight highs or lows. We’ll assume we hit at least that full range today, and with the Red Tag news, price could surpass it.
Gamma: The gamma flip level has shifted up once again to our 7860 spot. It also sits on a beautiful Put Wall at 7860.75, and it lines up with the previous Weekly Value Area High at 7860 — a very important pivot for us all week. Dealers will be monitoring this level, and as of right now they are hedging their positions to the upside.
Trend: Up on all time frames. We are up on the Weekly, Daily, 4-Hour, and 1-Hour, which tells us this is a massive buy-the-dip opportunity. We are looking for any pullback into major support to play for the long, and we have no reason to believe otherwise until we lose our significant levels.
🧠 Current Market Context
Buy the Dip Into CPI
As long as we maintain above 7860, we have a very bullish upside lean. That makes 7860 a very important level today for several reasons: it is the previous Weekly Value Area High, the Put Wall sits there, and now the gamma flip sits there too. Being above it shifts momentum strongly in favor of the Bulls.
Yesterday’s sweep of the 7837 Daily lined up with the SPX Weekly to the tick, and that catapulted us higher in the afternoon session. We have now propelled all the way up and are +20 points at the time of this writing, bumping our heads on the big 7875.25 Daily — our highest, most untested Daily, which is getting a reaction right now. Keep in mind that this Daily is just a potential head bump. We have not lost on the Daily time frame, and we are still pointing up.
