We start the day with what looks like CPI, a 400+ point drop at 5:30, and the rest of the day tries to digest the move.
Orange circle: There is a great 1m test of the 34 right as EMAs get bullstacked, on the rebound shortly after the open. We can hold this until the 5m wave fails.
Purple circle: Shortly after, we get a fake 34 rejection on the 5m, along with a perfect 1m bullish engulfing 7J entry on the 1m downwave. This takes us through to the end of the 5m wave shortly after, where it stalls for the next 4 hours.
Blue circle: We get a bearish harami 7J, big body, on 1m as the 5m wave gets too tired, but this is still not a great overall move. It provides a profit of over 100 points just because it’s one of those days, so it’s worth taking here. But we should not expect any huge moves after that news.
Yellow box: At the end of this pull back to the 5m 34, 1m makes a perfect bullish harami 7J, and we can go long again for another 100+ points.
Purple boxes: Toward EOD, we get bearish engulfing, bearish harami, and bearish spinning top/bullish hanging mans at the highs, breaking the previous highs of the 5m wave exhaust at 7:45. This can be shorted for about 80+ points until EOD, but it’s not that important of a trade. Note that this is also technically a 5m pullup with 1m wave ending it, for a trickle down toward EOD, but time just runs out before a bigger drop can come.
