The quiet market continued today with almost nothing to show for it once again. Yesterday we had a less than 25 point intraday range in SPX, today we were at about 28 points. The realized volatility is far under the implied volatility right now, creating a pretty boring market place.

Nasdaq continues to move nearly 1% a day, but SPX has been stuck in the mud, a lot of which I explained in my video from yesterday.

At some point this has to change and perhaps tomorrow is the first chance for that, with the monthly CPI report in the morning.

The daily chart did break the continuous push higher trend, with today’s candle failing to make a new high when compared to the previous candle. SPX is now down 6 points for the week, compared to the 4 points from yesterday – so yes, SPX had a net change of 2 points today.

The trend over the past few weeks has been SPX tagging the expected move in the first half of the week. As of right now, it seems this trend might be changing as well unless SPX finds a way to move 90+ points tomorrow.

It has been an incredibly quiet October, when October usually is not the quiet month. We also have an important election just a couple of weeks away, and yet the market can’t seem to find a reason to wake up. We are also seeing some historically low volume across the board.

7780 and 7820 seem to be the key levels that SPX has been stuck inside of this week. We would need a breach with some momentum to hopefully ignite a bigger move.

CPI could easily gap SPX beyond these levels right at the open, and honestly that sort of volatility would be welcomed, regardless of direction.

Never short a dull market is what I was always told, but I also have never seen such a dull market outside of major holidays. The market is waiting for something to tell it what to do.

CPI into PPI will be the major driving point for the rest of the week. Let’s see what happens.

Good luck!