The S&P has broken short-term support, but the larger uptrend does remain.

Hot inflation data has caused the S&P 500 to break trendline support however further support sits below 4000 and then 3,950. Unless the lower trendline breaks the bias is still up. A break of this trendline may cause a large fall further back towards the 2022 yearly low. Looking towards the upside resistance now sits at 4,080 followed by 4,145. A break above here takes the S&P towards 4,200. In our opinion, the market is taking a breaker and while inflation numbers from CPI & PPI were higher than expected, they still showed an overall downtrend YoY and MoM. GDP figures are due later this week and could cause a further fall if below expectations, if GDP is higher than expected, markets could rally back towards the 4,200 regions. MACD on the daily is negative with an RSI reading of 50 suggesting a short-term negative bias, but an upside in the medium term.