The S&P 500 reverses sharp decline as investors digest soaring consumer prices.
On the daily timeframe, the index saw strong buying interest on the rising trendline (4040) from March 2020. In conjunction with the RSI’s double-dip in the oversold territory, traders were eager to pick up bargains. The sharp correction may end as swiftly as it started if buyers succeed in pushing above 4150.
That would confirm the bullish MA cross off the major support. From there the price could rally back to the previous peak at 4144.
