Hot CPI — Now Bulls Have to Defend
by Tony Rago
CPI came in a bit hotter than expected this morning, pushing price back toward 7,512 in ES and 27,600 in NQ. Headline CPI rose 0.4% month over month versus the 0.3% estimate, while core CPI increased 0.3% against expectations of 0.2%. That puts buyers in a position where they need to defend this pullback, or risk a deeper retracement toward last week’s lows. For the bulls, the key areas are the ES weekly pivot and 7,482, along with the NQ weekly pivot and 27,412. Bears have a different job: keep ES below yesterday’s close at 7,580 and hold NQ under the 28,000/27,912 zone. Those levels should help define whether this is simply a pullback or the start of something more.
It’s going to be a bumpy one today, so keep it simple and trade what’s in front of you. Don’t assume buyers will automatically step in just because price has pulled back, and don’t chase weakness without confirmation either. Let the market show you where support is holding and where sellers are gaining control. With the CPI surprise adding another layer of uncertainty, risk management matters more than ever. Stay patient, respect your levels, and let the price action guide the next move.
👉 Full breakdown is inside today’s Pre-Market Playbook.
Check it out here and trade it smart.
Until next time,
Tony
