Strategists at Credit Suisse continue to look for a top below the 61.8% retracement of the Q1 collapse at 2934, with support seen at 2863/60, then 2837 after analyzing the S&P 500 chart.
Key quotes
“We continue to look for a topping process at the upper end of our 2883/2934 recovery objective zone, in line with our core view that the recovery from late March has been a corrective rally only, especially given the poor volume pattern.”
“Immediate resistance is seen at the 63-day average at 2898, which we look to try and cap on a closing basis, with support seen at 2863/60 initially, then the lower end of Monday’s price gap at 2843/37.”
“Above 2898 can see strength extend back to retest 2921, potentially the 61.8% retracement at 2934, but with a fresh cap expected here.
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