S&P 500 Loses Momentum as CPI Risk Clouds the OutlookUS 500CAPITALCOM:SPX500DomicChainaHello everyone, the S&P 500 is currently trading around 7,360 after failing to hold above the 7,500–7,600 resistance zone. On the H4 timeframe, price has slipped below the EMA34 and continues to face selling pressure on every recovery attempt, suggesting that the bullish momentum seen since late May is beginning to fade. Recent price action is particularly interesting. The index experienced a sharp selloff accompanied by a significant increase in volume, followed by a quick rebound that failed to sustain itself. This type of behavior often indicates that larger market participants are becoming more cautious rather than aggressively buying at elevated levels. From a fundamental perspective, investors are focused on the upcoming US CPI report, widely considered the most important event of the week. Following stronger-than-expected US employment data released last Friday, concerns have grown that the Federal Reserve may keep interest rates higher for longer. As a result, Treasury yields remain elevated and continue to pressure growth-oriented equities. In the short term, the 7,300–7,330 area represents a critical support zone, where buyers recently stepped in with noticeable strength. If the S&P 500 manages to hold above 7,300, a rebound toward 7,450–7,500 could develop. This would provide an opportunity to assess whether buyers still have enough momentum to regain control of the broader uptrend. However, if 7,300 breaks decisively, selling pressure may accelerate toward 7,200, with 7,100 becoming the next major downside target. At this stage, I believe the market is entering a crucial phase. After several weeks of strong gains, investors are waiting for inflation data to provide direction. Therefore, the 7,300 level is more than just technical support—it may determine whether this is merely a healthy correction or the beginning of a deeper pullback.