Last week was full of earnings reports, economic events, and statements by the Federal Reserve.
This week, the main economic event we’re focusing on is the Consumer Price Index (CPI) report released on Wednesday morning. This report will tell us if consumers are paying more or less for goods and services. This ultimately gives us a gauge of inflation.
We’ll tie the CPI report into our thesis for the week and lay out the different scenarios we could see if this catalyst gives the market a relief pop or drops it lower.
On Monday, the S&P 500 (/ES) dropped to the major key zone from $4,055 to $4,029 we’ve been discussing. We took advantage of this move in the Simpler Day Trading Room with SPX puts, locking in profits to start the week.
In the video above, we’ll lay out major liquidity levels and scenarios we could see if SPX reverses structure heading into the CPI report.
Here is our focused list:
SHOP — If SHOP breaches $334, look for it to break down to the major zone from $305 to $282. If it starts to pop through $355, look for SHOP to work its way through $383 to point of control (POC) at $401.50.
ROKU — See if ROKU can first pop to $92 for short opportunities. From there, look at the $97 to $103 zone to short again. Our targets to the downside are $83, $80, and the earnings low at $75.