S&P Has 2 Key Levels to Hold With CPI on Deck

Plus a BTD setup on a strong name.

Technical Edge — 

• NYSE Breadth: 84% Downside Volume (!)

• NASDAQ Breadth: 31% Upside Volume

• VIX: ~$27

Game Plan: S&P 500, Nasdaq, Oil, DLTR 

I was wondering if we would get a rally into the CPI report and a “sell the news” reaction or a risk-off approach heading into Wednesday. So far, it’s been “risk off.” 

If that continues, bulls will want to see two key levels hold on the S&P going into the event. Otherwise, we can’t rule out a retest of the lows. 

S&P 500 — ES 

The 3860 support level ended up holding by a thread on Monday, but was lost overnight during Globex.

From here, two key levels stand out as support: ~3807 and the 3740s. 

Lose the former and the latter is likely in play. Below 3740 (and a close below it) could put 3650 or lower on the table (the lows). 

On the upside, I want to see