3/13 Daily Market Note: Post CPI Digestion
Another big move may be coming shortly
Hey Everyone -
A slow session as markets digest yesterday’s large rally. Our pre-market suggested that today may be a range-bound session and as of this post, that appears to be the case.
On the surface, today appears to be a consolidation session. However, underneath the hood, I believe another large move is incoming.
Orderflow data discussed below.
Traditional candle stick charts are showing range-bound movement today.
But Orderflow on ES (S&P 500 Proxy) shows very strong negative delta (which measures buying/selling imbalance).
Such negative delta is usually a prelude to a short-covering rally or the formation of a selloff.
Folks who are looking for a larger range expansion day will soon get one, I believe.
Some new ideas discussed below.
-Larry
Multi-Timeframe Thinking:
Intraday: For tomorrow/Friday, I expect Option Selling to be less favorable than Option buying. Option buying works better when markets move fast.