Tonight's CPI data is a crucial juncture,

especially against the backdrop of the current highly sensitive market sentiment, its influence cannot be ignored.

If the CPI is lower than expected, it implies that inflationary pressures have eased, and the market will likely interpret it as a signal for the Federal Reserve to accelerate interest rate cuts, at which point U.S. stocks and crypto assets may experience a short-term rally, and market sentiment will quickly improve.

If the CPI is higher than expected, the market may worry about a delay in the interest rate cuts, leading to a quick downturn in the short term, and bears may take this opportunity to release energy.

If the CPI meets expectations, the market reaction may be relatively muted, and funds will shift their focus to the next catalytic event, such as the Federal Reserve meeting, PPI data, etc.

Regardless of what the data ultimately presents, volatility is almost inevitable, but the direction may not be clearly evident at first. Especially in the few minutes following the data release, it is easy to see false breakouts and false pullbacks, resulting in a "double kill" for both bulls and bears. For short-term traders, it is crucial to strictly control their positions at this time to avoid being eliminated by the market during extreme emotional fluctuations.