The S&P 500 posted a neutral ‘doji’ on Thursday as the market digested the new Fed policy announcement, however, the Credit Suisse analyst team still believes that the market has entered a more accelerated trend state, with daily RSI momentum remaining above its June peak, reinforcing the move higher. The next major resistance is seen at 3541/43.
Key quotes
“The break above our prior objective at the Fibonacci projection level at 3432/36 and the top of the potential trend channel resistance earlier in the week still suggests the market has entered a more accelerated phase, with daily RSI momentum also remaining above its June peak, reinforcing the break higher.”
“Next resistance is seen at the top of the weekly BollingerBand at 3500/03, then the top of our typical extreme zone (i.e. 15% above the 200- day average) at 3541/44, which is expected to prove a tougher barrier.”
“Support stays at 3468/66 initially, below which would complete a very small intraday top, however, only a break below the uptrend from late June and the 13-day exponential average at 3418/12 would remove the upside bias.”
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