Back-to-Back Inflation Prints: A Tale of Two Reactions

This week opened with key inflation data releases that shaped two very different price responses.

📊 Yesterday brought us core PPI, which surprised to the upside. The market initially rallied strongly—expanding nearly 50 points—but that move failed to hold. We saw a full reversal and a gap-fill as the session progressed, signaling fragility in momentum despite the data beat.

📉 Today, we received CPI, another positive surprise. But unlike yesterday, the market reaction has been much more contained—just a 10 to 20-point range so far. We’re looking at an inside day setup, with price consolidating beneath yesterday’s highs and showing less directional conviction.

🔍 What This Means
Today can be categorized as a moderate-to-high opportunity day, but with a caveat: you must let the market pick a side. Whether we see a clean reversal or a breakout continuation will likely depend on whether price can retest and hold above yesterday’s highs.

⚠️ Execution Tip
Don’t anticipate—respond. Structure your trade only after the market reveals its hand. This isn’t a “hero” day; it’s a precision day.

Regards

Shawn