The price action in SPX today was pretty interesting, considering how close we were to breaking above certain key levels yesterday. I spoke about 6083 needing to be tested and broken above for the bullish scenario to play out. We got to 6076 and then headed lower, failing to test the expected level.

Yesterday I also mentioned a possible bearish candle on the daily chart, with the move being completely inside of Friday’s range. Today we continued that pattern, but 2 days in a row of this could signal more indecisiveness than bearishness, but that remains to be seen.

SPX seems to be coiled into a very narrow range the last 2 trading sessions, perhaps waiting for the CPI report tomorrow to set a direction.

Going back to last Monday, we can see a possible new contracting wedge forming in the SPX. The red lines are the contracting wedge while the blue lines are last Friday’s range. We seem to be getting narrower and narrower, which indicates a large break to one of the sides is incoming.

There is no sense in trying to predict where it will break, but instead we will let the market tell us while we watch for our key levels. The ideal time to put on a trade will be at the breach of this contracting wedge, and/or on a possible retest.

I expect CPI to shoot us out pretty sharply in one of the directions. The market doesn’t have much more room to go sideways without naturally breaking out of the wedge.

NVDA seems to have stopped to take a breather today. We spent most of the day unchanged and grinding sideways. The expectation is still bullish in NVDA and that won’t change until we break back down into the lower box.

AAPL seemed to tease it’s former self today, outperforming the market and being up when SPX and NDX were weak. We have not seen this type of price action from AAPL in quite some time. We are still not at the level where the bearish scenario is no longer in play, but there needs to be some downside pressure soon. Sustaining a break above 235 could put the bearish scenario in jeopardy, and 240 probably kills it completely.

GOOGL is still hanging on for dear life, grinding sideways after breaching below the grey box we have been watching. 184.50 or so seem to be a level of support that if broken, could see us go straight down to 175, which is the current price target of this bearish move.

And last but not least, TSLA is doing exactly what was expected. So far, every level and prediction on TSLA has come true. Yesterday we saw 350 play support and the expectation was that if it broke, look out below! That is exactly what happened today and the price target of the low 300s still remains in tact.

TSLA appears to be heading into a free fall and the expectation is that every rally should be sold. It is possible we try to retest 350-360 soon, as it appears to be a bit oversold currently. If we even make it that high, the expectation is that the range is rejected and we head back down.

As for the overall market, CPI seemed to rally the SPX pretty big last month. If the numbers are inline or better than expected, we most likely rally but if inflation comes in hotter than expected, I think we are heading down towards 6026 or even 6000.

Tomorrow will be an interesting day for sure, and could set the tone for the rest of the week.

Good luck!