The S&P 500 Index edged a little higher on Wednesday but it is expected to stay capped at 3850 for now for a high-level consolidation phase following its bearish “reversal week”, with support seen at 3792/73.
See – S&P 500 Index: Recent comparisons to the tech bubble are misplaced – Morgan Stanley
Key quotes
“S&P 500 still remains capped at what we see as more important resistance at the 3837/50 price gap. With a large bearish ‘reversal week’ in place our bias remains for this to continue to cap for now for a phase of high-level consolidation.”
“Support moves to 3817 initially, then the price gap from Tuesday morning at 3792/73. Below here remains needed to reinforce a sideways ranging phase for a fall back to 3726, then more important support, starting at 3694 and stretching down to the low for the year at 3663.”
“Above 3850 would increase the risk the setback may already be over for a move back to the 3871 high and eventually our long-held 3900 ‘measured triangle objective’.”
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