Buying SPX up to 6,200

According to the Labor Department's Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) surged 0.5% last month, which was the highest rise since August 2023 after a 0.4% increase in December.

The cost of housing, including hotels and inns, rose 0.4% accounting for nearly 30% of the CPI growth. This followed two consecutive monthly increases of 0.3%.

Food prices rose 0.4% after rising 0.3% in December. Grocery store prices jumped 0.5%, with the cost of eggs surging 15.2%, the highest rise since June 2015. That accounted for about two-thirds of the increase in grocery store prices.

The chances of a rate cut this year are fading. Consumer expectations for year-on-year inflation surged to a 15-month high in early February as households realized that it may be too late to avoid the negative impact of the tariff policy. These findings were shown in a consumer survey conducted by the University of Michigan last week.

High inflation along with a stable labor market make some economists believe that the Fed's monetary easing cycle is over.

Several analysts suggest that much of Trump's rhetoric on tariffs appears to be more of a negotiating tool, since a lot of his aggressive measures ended up being eased, delayed or not materialized at all.

When such a weak CPI report was published the stock market quotes, including the S&P 500 index, went down sharply, but then within a few hours they returned to the opening levels of the US trading session.

Some support for the prices was probably provided by Powell's statement that the US economy is in a pretty good state despite some short-term fluctuations in inflation.

The overall recommendation is to buy the S&P 500 index.

Profits should be taken at the level of 6,200. A Stop loss could be set at the level of 6,000.

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.