CPI 2.7 meets expectations, but the market is not buying it!
CPI is exactly 2.7, meeting expectations. The drop yesterday may have been a preemptive reaction to the increase in CPI.
Right now, it just meets expectations, but I don't think that's good, as there is divergence in the market regarding what meeting expectations means. The upcoming debate will be: either they believe it won't affect the continued rise, or they will sell off due to recurring inflation and the hopelessness of interest rate cuts. The previous surge was strong because everyone was bullish and not selling their positions; now there is divergence, and the market may correct or consolidate.
I still hold my previous view: first watch the key level of 115; if it doesn't break, continue to look bullish towards 12 or even new highs; if it breaks, it may drop to around 105, entering a large consolidation phase.
