SP500 - resistance along the upper trendline of the channel at 5,049. Support at 4,919

The SP500 now trading above the 5,000 milestone, trading around 5,008. We can see it is now finding some resistance here, especially after the hotter-than-expected inflation data earlier in the week. The key resistance here is along the channel's upper trendline, which is also this week’s high, reading 5,049. A break above it could see the index rise further reaching new highs, perhaps stretching towards 5,080-5,100. The support here is this week’s low of 4,919, a break and close below it would increase the likelihood of a further retracement towards 4,817. 4,817 used to be the all-time high back in 2022 and also used to be the key resistance but it has now flipped to key support. Well, only if a move below 4,919 occurred. Looking at the technical indicators, they remain very positive. The MACD continues to rise with elevated volume and the RSI reads 73. The RSI suggests that the index is a little overbought, however, it is a lagging indicator and markets can be overbought or oversold for long durations before a shift in trend.