CPI Reaction — Bulls Face the Test
by Tony Rago
CPI came in a little hot this morning, but overall it was still largely in line with expectations — enough to create some overnight weakness without fully breaking the broader trend. Bulls are going to get tested at the open here, especially after such an extended move higher over the last few weeks. NQ still looks like it wants a proper test of the big 29K round number, but for that to happen, bears need to continue defending 29,312 as resistance. If that level holds, there’s room for price to rotate lower and finally probe some deeper support areas before buyers potentially step back in.
This is where the opening range becomes critical. Early reactions around data releases can be emotional and noisy, so instead of forcing a bias, I’ll let the market open and show who actually has control. If buyers absorb the weakness quickly, the trend could reassert itself fast. If sellers start building acceptance lower, then patience on the long side becomes even more important. Either way, the goal stays the same — stay objective, manage risk, and let the tape guide the trade instead of anticipating the move.
👉 Full breakdown is inside today’s Pre-Market Playbook. Check it out here and trade it smart.
– Tony
