The weirdness within the markets continued on Tuesday. The CPI data initially caught a downdraft that was quickly swallowed by a strong upwind which eventually moved the ES and NQ to new highs for this sequence. I was looking for that and could actually count the small C waves as complete. The markets did turn lower right off the highs which gave some strength the possibility of the moves being complete and the downtrend picking up again. Then came the 5 minute mile run up – which may have broken records for marking to market! I update the resistance levels in both the ES and NQ and line up some evidence that a stronger move down is waiting patiently to start and could loose its patience quickly.
Wednesday pre-market the latest PPI, Empire State Manufacturing data will be released at 8:30 AM EDT and Business Inventories data at 10 AM EDT.