S&P 500 maintains a small bearish “reversal day” after its rejection of the 4238 record high. Although daily MACD momentum has turned higher this suggests it still may be too soon to look for a direct resumption of the core uptrend, according to the Credit Suisse analyst team.
Slight upward bias for a retest of the 4234/38 record highs above support at 4170/69
“Although daily MACD momentum has turned higher there remains the risk it still may be too soon to look for a direct resumption of the uptrend.”
“Support remains at 4198 initially, then the 13-day average at 4183, with the recent price gap at 4176/69 ideally holding. Above 4210 is needed to clear the way for a back to 4234/38. Beyond here though is needed to neutralize the bearish ‘reversal day’ for 4260 next.”
“Big picture, we continue to look for a move to 4350.”
“Below 4169 can instead reinforce thoughts of further range trading for a fall back to 4156/52, potentially the uptrend from late October at 4140, but with fresh buyers expected here for now.”
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