The S&P 500 remains well supported above the 13-day average and uptrend from June at 3360 and 3371 respectively. Above 3400 can see the uptrend extend to the 3432/36 resistance from which economists at Credit Suisse would then look for a corrective phase.
Key quotes
“S&P 500 remains well supported above its 13-day average and uptrend from late June, seen at 3360 and 3371 respectively and the market has (just) managed to close at a new record high. Although the momentum picture remains poor, with a bearish RSI momentum divergence still in place, the immediate risk still leans slightly higher, even if the risk for a correction lower is seen growing steadily.”
“Above 3400 can negate the recent small bearish ‘reversal day’ for strength to trend resistance at 3416 initially, then more importantly at our ‘ideal’ objective at 3432/36. It is from here we continue to look for a correction lower to finally emerge.”
“Support moves to 3379 initially, then 3371, with a close below 3360/54 still needed to suggest a correction lower is finally underway with support then seen next at 3326, then gap support from early August at 3317/07.”
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