Market Analysis Summary: CPI Morning Bullishness
Author: Elior Manier
Date: February 13, 2026
Overview
The article discusses the recent market movements following a soft Consumer Price Index (CPI) report, which has led to a rebound in major stock benchmarks, including the Dow Jones, Nasdaq, and S&P 500. Despite a previous downturn, equities are showing signs of recovery, buoyed by expectations of a potential third interest rate cut by the Federal Reserve in 2026.
Market Reaction to CPI Data
Initially, the market reacted negatively to the CPI data, which indicated the softest inflation in nearly five years. However, this sentiment quickly shifted as investors began to anticipate the implications of the data on future Federal Reserve policy. The current interest rates are between 3.50% and 3.75%, and the market is pricing in further cuts.
Key Point: The CPI report has led to a bullish sentiment in the market, despite initial pessimism.
Technical Analysis
The article provides a detailed technical analysis of the major indices:
Dow Jones (DJIA)
The DJIA is testing a pivotal support level around 49,000. A successful push above this level could lead to a recovery towards 50,000. Key resistance levels are identified at 49,500 to 49,730 and 50,000.
Nasdaq
The Nasdaq is showing a strong rebound, indicating a potential break-retest formation. A close above the psychological level of 25,000 is crucial for confirming the bullish trend.
S&P 500
The S&P 500 is attempting to break above its pivot zone, with a significant level to watch at 6,900. A successful break could lead to new all-time highs.
Market Sentiment and Future Outlook
Overall, the market sentiment is cautiously optimistic, with a focus on the upcoming decision from the US Supreme Court regarding the Trump Tariffs, which could impact inflation and market dynamics. Investors are advised to keep an eye on geopolitical developments, particularly regarding US-Iran relations, as these could further influence market conditions.
Conclusion
The article emphasizes the importance of monitoring key technical levels and market sentiment as investors navigate the current landscape shaped by inflation data and potential Federal Reserve actions. The upcoming days will be critical for determining the sustainability of the current bullish trend.