NAS100USD: CPI Volatility & Institutional Continuation Sell-Off

Greetings Traders,
In today’s analysis on NAS100USD, we observe that the market remains bearish following a significant CPI news release. This high-impact event resulted in a sharp bearish displacement, reinforcing the ongoing bearish narrative. Yesterday, I shared an analysis predicting this continued bearishness. For those interested, you’ll find that analysis attached at the end of this description for deeper context.

KEY OBSERVATIONS:

CPI-Induced Displacement: The CPI release triggered a large downward move, forming a massive single candle that left behind a noticeable inefficiency—a Fair Value Gap (FVG).
Liquidity Grab & Fair Valuation: After sell stops were taken, price retraced to fill the FVG, restoring fair valuation. This retracement fully closed the gap, confirming a continuation of bearish order flow.
Premium Price Zone: We are currently in a deep premium price range, which aligns with institutional distribution zones. These areas offer excellent opportunities for confirmation-based sell entries.

TRADING PLAN:

Entry Strategy: Look for confirmation at the current premium price level before entering short positions.
Targets: Focus on discount liquidity pools at lower prices, as these are the areas institutions will likely target to take profits.

By following the institutional flow, we align ourselves with smart money practices, improving our precision and probability of success. Stay patient and disciplined—confirmation is key!

For more context, here’s yesterday’s analysis below.