S&P 500 has rejected as expected trend channel/Fibonacci resistance at 3980/84 and analysts at Credit Suisse look for further weakness within the gentle upchannel, consistent with the view that the market is in a broader consolidation phase, albeit still with an underlying upward bias.
See – S&P 500 Index still have much further to rise for three reasons – Natixis
Key quotes
“A setback for the S&P 500 as looked for as the market once again rejects its trend channel from late February and Fibonacci projection resistance at 3980/84 and this is seen adding weight to our base case scenario that the market remains in a broader consolidation phase, albeit with the underlying bias still seen higher.”
“Below 3899/97 can see the 13-day exponential average and price support removed to keep the immediate risk lower with support seen at 3886/84 next, the 38.2% retracement of the March rally. With price support just below at 3874, we would look for this to hold at first. Below though can open the door to a move to more important support from the 63-day average, now at 3929.”
“Resistance is seen at 3936 initially above which can see a move back to 3970/80, but with fresh sellers expected here. Above 3984 is needed to reassert the broader uptrend, for 4000 initially.”
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