CPI Lived Up to the Expectations….
As we mentioned in this blog before, the market is watching specific reports very closely in order to get clues about further FED actions.
One of these reports is the CPI, consumer price index.
The report came out today at 7:30AM central time and stock index futures moved down very violently. Stops experienced large slippage.
The move in 2 minutes was worth over $6700 per one contract, for good or bad!!
We reviewed and explained this specific topic in a previous blog, explain what happens when the report comes out, the lack of liquidity, CME’s “price banding” rules etc.
Please review the information HERE.
A 1 minute charts of the ES during the report below for your review.
Notice the VOLUME during this one minute ( over 33,000 contracts!)….
The volatility continued for the rest of the session with an impressive reversal to the upside.
As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.
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