Alternative Path

[gdl]

The 2-month wave of last is now up for this one. There are many negative candlestick patterns that could indicate the CPI tomorrow might just be hotter than expected. In my opinion TIME is running out to keep the economic in a positive expansion with a much-needed rate cut. The FED is determined to see a recession BEFORE they cut IMO.

Tomorrow at 8:30 we get a clue if this is the NORMAL corrective phase right here or something deeper. A hot CPI will cause an immediate drop but so far, we have not seen over a 4-day consecutive drop since the 10/27 low.

I expect a minimum drop tomorrow (initially) to approx. 5065 on SPX. 5035 might also be hit tomorrow. and IOF it breaks that a stronger steeper drop catching all by surprise.

If you noticed my analysis is deeply one sided. I don't anticipate a rally tomorrow but if the CPI is very tame watch out.