The S&P500 has recovered slightly after CPI matched expectations.

The S&P500 has recovered some of its losses from Friday and Monday as CPI came is as expected suggesting that the federal reserve may become more dovish going forward. Looking at the chart, however, despite the positive news, the upside trendline has clearly broken and therefore further upside is yet to be confirmed until 4,000 is likely broken above. Towards the downside, support has been confirmed at 3,800. For the time being it looks as though the S&P will stay within the zone of 4,200 to 3,800 until inflation returns to lower levels and the economy is in better shape.