Some CPI morning bullishness – Dow Jones and US Index Outlook

• Stock Benchmarks are attempting a fresh rebound, powered by the soft CPI print
• Markets were on quite a rout but are now pushing to recover
• Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

The price action at the Market open wasn't the prettiest one, but Stock bulls haven't said their last words.

After correcting by an average of -0.50%, Equities are rebounding amid widespread bullish contagion, supported by the pricing of a third Fed Cut in 2026.

It was surprising to see such a pessimistic reaction after this morning's print, given that inflation is the only data warranting higher rates in the US, which are currently still in the 3.50% to 3.75% range. Indeed, it is the softest inflation print in almost five years.

Still, the price action isn't so straightforward with Participants rattled by the brutal corrections, deleveraging and repricings from early February.

What could rattle investors is that the cooling is not widespread, with a few factors still rising from the impact of tariffs – Transportation services, which affect the entire pricing (with deliveries of goods) rose to their highest since Summer 2023.

In that regard, the US Supreme Court announced that it will issue its final decision on the legal status of the infamous Trump Tariffs on February 20, so keep that date on your agenda.

Stocks hadn't reacted to yesterday's announcement from Israel's PM Netanyahu that the US would really prefer a deal with Iran, which brought with it a wave of premium-reducing in commodities, with Metals and Energy commodities retracing.

Even Cryptos are rebounding in this morning's action, hence the widespread positive sentiment acted as a boon for Equities.

Magnificent 7s and Credit Services (plagued by rising delinquencies) are the only laggards of this morning's action, while the rest are sighing in relief of the soft print.

Dive into today’s session intraday charts and key trading levels for the major US indexes: the Dow Jones, Nasdaq, and S&P 500.

Read More:

• It's an everything rally after the CPI miss – Market Reactions
• US inflation slows, Fed may cut rates more than the market prices in
• Chart alert: Dow Jones (DJIA) potential recovery at 20-day MA support, bulls need to break above 49,940

The DJIA tested its Pivotal 49,000 support in this morning's action, with bulls leaning heavily on the Psychological area for the ongoing rebound.

Now testing its intraday Pivot region, any push above this shouldn't see much resistance to regain 50,000 – Watch the 200 Hour MA (49,730).

Closing back above 50,000 this week should help sentiment throughout the rest of the month, so keep the level in check.

Dow Jones technical levels for trading:

Resistance Levels

• January ATH Key Pivot and 200-Hour MA 49,500 to 49,730 (testing)
• 49,900 to 50,000 Resistance
• Intraday Resistance 50,250
• ATH Resistance 50,400 to 50,500
• Index All-Time highs 50,512

Support Levels

• CPI Session lows 49,073
• Major Support – 49,000
• Past week Support 48,600 to 48,700
• Key Support around 47,500
• 45,000 psychological level (Main Support on higher timeframe)

Nasdaq is showing quite a strong rebound in this morning's action, pointing to a break-retest formation – A bullish signal.

Nevertheless, bulls will have to push towards the 25,000 Pivot to confirm the bounce, with the action stalling a bit towards the mid-session.

A close above the psychological level should help the Tech sector for the weeks to come.

Nasdaq technical levels of interest:

Resistance Levels

• Session highs 24,857 – Bulls need to break for a higher push
• Key Pivot 25,000 to 25,250
• 25,400 to 25,500 Key intraday resistance (2H 200 MA)
• Pivotal Resistance 25,700 to 25,850
• All-time high resistance zone 26,100 to 26,300

Support Levels

• 24,500 to 25,600 Key Support (morning rebound)
• February 5 lows 24,165
• October - November Support 23,800 to 24,000
• Early 2025 ATH at 22,000 to 22,229 Support

The S&P 500 is attempting a push above its pivot zone. Any break past 6,900 should easily lead the towards some new all-time highs.

Watch sentiment towards the close and Monday's open!

S&P 500 technical levels of interest:

Resistance Levels

• Pivotal Support Zone 6,880 to 6,900 (Watch the 50H MA at 6,900!)
• Previous ATH Resistance 6,945 to 6,975 (Rejecting)
• Session top 6,996
• Current ATH 7,020
• All-time High Resistance 7,000 to 7,020 (range highs)

Support Levels

• Session bounce 6,789
• Mini-Support 6,830 to 6,850
• 6,800 Psychological Support
• Overnight lows 6,735 (range lows)
• 6,400 Major psychological support

Safe Trades and keep a close eye on the US-Iran developments!

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