This morning was loaded with economic data: CPI, Jobless Claims, Empire State Mfg, Industrial Production, Philly Fed, and the Housing Index. Claims slightly beat expectations but the CPI number missed which started the ES tumbling pre-market into the DTG 60.75 level. This was my area of the day’s low frame and where the ES cash open started. The first 30 minutes of the market open was spent waiting on a long order flow opportunity from the DTG 60.7 level, but none ever unfolded. Then the Philly Fed number came in at 10am EDT and missed expectation heartily. The ES sold off through the DTG 60.25 level to bounce in no man’s land. By this time, it was clear some fear had kicked in and if the ES climbed back to the DTG 60.25 level, it may setup for a continuation short to retest the low of the day. That’s what happened and is today’s example trade.
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