ES Range Expectation for PPI and the Friday Session
Updated
Today we're looking at ES e-mini futures for an expectation of the amount of range we could do. We take a look at both the upside and downside to get a view on where the boundaries of normality would be to aid us in framing intraday trades.
Yesterday's CPI Inflation data provided us with the 2nd large range day in a row (big range days tend to cluster) and today we're about to get the PPI data that usually follows the day after but is a bit more forward looking on inflation expectations. In short it could be another catalyst for another large range day.
Yesterday's CPI Inflation data provided us with the 2nd large range day in a row (big range days tend to cluster) and today we're about to get the PPI data that usually follows the day after but is a bit more forward looking on inflation expectations. In short it could be another catalyst for another large range day.
Note
A quick update on how this has played out (so far... we're about 1 hour off market close here).The PPI move was only about 20pts on a quick spike down and recovery back to the pre-news level and a bit more. But once the US session opened we broke higher quickly and ran a little over our 5680-5685 upside range expectation before pulling back slightly and then pushing up again making a new all-time high (by 2-ticks!) at 5708.25.
So for intraday trade & target framing our upside target made sense but the market pushed even higher to re-test the CPI spike high. So we did end up with 3 large range days in a row.
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