The S&P 500 Index has now closed (just) below its 13-day exponential average and as daily MACD momentum has crossed lower, the risk for a corrective setback looks to be increasing, the Credit Suisse analysts team reports.
See: S&P 500 Index to soar to 4,100 by June-2021 on a vaccine deployment early next year – UBS
Key quotes
“The S&P 500 rally continues to lose momentum with the market unable to hold its early gains from yesterday, closing (just) below its 13-day exponential average, with daily MACD now having also crossed lower.”
“Below support at 3636/33 would see this pressure increase further with support then seen next at 3625/22 ahead of the late November low and price gap at 3594/78, with fresh buyers expected here. Failure to hold here though would be seen exposing the 38.2% retracement of the October/December rally at 3530.”
“Whilst 3633 holds a slight upward bias can be maintained but with a move above 3671 needed to clear the way for a move back to 3698, then 3712, ahead of our 3720/25 next objective.”
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