PPI Market Review August 13, 2026

Date: 2026-08-13

[00:00] All right, folks, how are you? Welcome back. This is going to be a real short one. We have a daily chart of NASDAQ on the left-hand side, and this is what we had at yesterday’s close.

I want you to look at these bodies. See how smooth that is? I talked about this earlier this week.

Post-CPI Upside Repricing

[00:37] Okay. Whenever it’s like that, it’s basically like SWAT teams ready to bust through at any time. We failed to go lower beyond the scope of what I was suggesting as the downside objective. We reached that downside objective, and up until the CPI number yesterday, I had no intention of looking for anything higher.

But when I woke up this morning, I saw that we had everything in motion to send price to Wednesday’s high, maybe last week’s high. If it had been a little slower-paced run this morning—

Equal Highs and PPI

[01:24] It was very quick right out of the gate at 9:30. You have these relative equal highs here, and then we have this old inefficiency here. But this one here should’ve already been on your chart. It should’ve been obvious to you, but it was so far away from down here that it wasn’t worth mentioning yet.

Then on the next candlestick, you can see price trade all the way up into it. We bust through these relative equal highs and leave these bodies right here. As we approached the 8:30 PPI number, I had expected this.

[02:08] Then I mentioned on a chart—see how we have this kind of pseudo-diagonal trend-line structure? I like looking for this kind of thing. Then right here, at the midpoint, I called for this as a potential level to trade below this morning on the CPI—I’m sorry, on the PPI number. It initially looked like it was going to make an attempt, but once it got below here, that was it. It wasn’t interested in going any lower.

[02:52] Now, I’m of the opinion that if I hadn’t said that, it would’ve gone down there. You can argue and wrestle with me in the comments section; you’re welcome to your opinion. But I’ve been around the game long enough to know that it would’ve been highly reasonable for price to trade down there, take that out, and then go up to Wednesday’s high.

You’ll see Wednesday’s high over here. That’s what I suggested. So on the 15-minute time frame, the idea was: go down to go up, clear Wednesday’s high, and trade through 30,000.

PPI Sweep and Reversal

[03:28] Okay, so that’s what I was looking for. Then we created the 8:30 candle here. These are the trend lines—not that I like trend lines; I just like looking for them to be victimized.

We’re on a 1-minute time frame. At 8:30, price opened, ran all the way up, and then came back down. We basically swept Tuesday’s high from two days ago, then came back inside. We had this weird structure forming here that made me think price was likely to come down and, at the very least, take out this low.

[04:29] Even if it failed to go lower, that would’ve been enough to warrant a partial. I went in looking for a short—to sell and then buy it back at the low or very close to the low—then hold for Wednesday’s high to be taken out, and maybe trail something if price allowed for it. It would’ve only been one or two contracts trailed as a runner.

Price started showing an unwillingness to go lower, so I collapsed the position and went long.

Order Flow Entry Drill

[05:05] Then we have this buy-side imbalance, sell-side inefficiency. We have this high here, and I thought price could draw up into this portion of the Fair Value Gap. Watch this, I’ll show you. See it there? And this is how far price traded into it. So from there to there, that portion remained open, but the gap itself is defined by that.

So we have an Institutional Order Flow Entry Drill using last Friday’s daily high. That’s a key PD Array. Price rallies up, trades into the Order Block there, and we have a Change in the State of Delivery.

[05:50] Price rallies. Once it starts taking out this high, I peeled off portions of the long and trailed the stop loss up to just below these lows here.

Price came down, hit it, and then traded all the way back down into my Fair Value Gap. You can see it traded down to Consequent Encroachment. Strong long here.

This is also the PD Array I was utilizing. See that big wick? If you’re looking at this, that’s fine, but if there’s a wick to the left, you have to be mindful of it.

Friday High and Gap

[06:39] We can look at the 50% level and broaden that out. Even the bodies stop right at the halfway point of that wick.

So we have this midpoint here, and you can see the bodies respecting it as well. Look at that. Isn’t that brilliant? Price comes right down, touches last Friday’s daily high, and then trades down to the Consequent Encroachment of my buy-side imbalance, sell-side inefficiency Fair Value Gap.

Daily Highs as Targets

[07:24] Then it rips higher. So just above this midpoint would be an ideal entry down inside the gap. Anywhere in there is a good fill. Price rips higher.

I measured from Tuesday’s daily high to Monday’s daily high, and this is halfway between them. You can see it measured right here from there to there—that’s simply the 50% level. So that’s Event Horizon. Price trades through it, and I really didn’t get an opportunity to take anything off there. Then at Monday’s high, a wonderful partial was taken. Wednesday’s high gets taken here.

As price runs through and comes back down, it utilizes Wednesday’s daily high and almost the Consequent Encroachment of this wick.

[08:21] Let’s measure it just for—look at that. Isn’t that pretty? The wick’s Consequent Encroachment lays directly on top of Wednesday’s daily high. That’s probably random.

Then we rip higher, take out last week’s high, and run through it, filling stops as warranted. We get up into this area, and I publicly announce 30,120 as my stop. There it is. Blink. Price never comes back down here again. It just keeps going higher and higher.

That’s where I would’ve taken my final portion off if it had let me, and then I would’ve missed this little additional move here.

Upside Objectives and Risk

[09:17] Price consolidates around here. The lowest octant trades lower, we have relative equal lows, and price comes back to the Consequent Encroachment of that Bearish Fair Value Gap on the daily chart. Now we’re just hammering around in here.

Pretty eventful day. This line represents where those bodies were on the daily chart. That’s what this line represents. Once price cleared that, I had no interest in seeing it come back down into it.

[10:10] I chased it higher as far as I could, but 30,120 takes me out of the game on this candlestick, so I wasn’t able to participate in the rest of this run. That’s that.

I don’t want to hold any hard targets for the rest of the week. If price is going to remain bullish, next week we could be looking up into this area. It’s a little too smooth, around 30,975.50, and then obviously we have the old highs. So a new all-time high could be in the making.

[10:54] I’m not going to go so far as to say that’s definitely what it’s doing, but for now we have this high and these relative equal highs here. Let’s put a line on the short-term high and wrap this video up.

So we’ll call it 30,600, and then 30,975.50. Those are the upside objectives. I’m not interested in being short. I’m not interested in taking any more trades, and I’m probably just going to try to fall asleep for a little while.

[11:31] Have yourself a pleasant evening—or day. Be careful tomorrow, Friday. I probably won’t be participating in anything online. If I can come up with something for a lecture, I’ll try, but no promises.

Enjoy your weekend, and until I talk to you next time, be safe.