The S&P 500 fell drastically on the opening of the US markets. However, CPI numbers were as expected, could a reversal be possible?

The consumer price index met the forecasts of experts, yet the S&P 500 saw a drastic decline. Perhaps it was overbought to begin with. From a technical aspect, it is currently trading at around 3,960 with key support below at 3,945, which corresponds with the white trendline. A break below the trendline could see the index fall further towards the support levels at 3,913 (higher dotted trendline) and then at 3,901 (2nd lower dotted trendline). However, as the figures showed that inflation is slowing, the index may do a reversal. Hence, resistance sits at 3,973 then at 3,978 and finally a key level at 3,999. A break above the key resistance could see the index climb towards 4,040-4,050. Looking at the indicators, MACD is currently negative but RSI is positive as it reads 54