We had a "pause day" yesterday as the market held the support line. We have the CPI today, so we could get a bounce if it's a good report. But I doubt if it lasts as there are a ton of trapped bulls in the market right now and the line in the sand for them is that support zone that we have stopped at yesterday.
If it breaks we could drop quite hard and fast several hundred points to one of the zones I talked about yesterday. Normally these levels hold and we bottom but the expected bottom isn't until the 14th, maybe the 17th. Then a bounce is expected before another drop into a low around the 25th, which could be a higher low or a lower low... I just don't know? If we take out the current support and drop hard into this Friday (or Monday) I'll have to think that the bounce and move down into the 25th will be a higher low. But it's too early to know that right now. Let's just see what happens after the CPI today, and more importantly, the close.
Have a blessed day.
