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Unlike the S&P 500, Nasdaq 100 is holding long-term support levels, but the broader risk is still seen lower, economists at Credit Suisse apprise.

Key quotes

“Unless we can see a recovery back above the 200-day average, currently at 8192, our bias is to view the broader risk still to the downside for a move back to 6937. A sustained move below here would raise the prospect of a more sustained bear trend.”

“A close above the 200-day at 8192 should ease bearish pressure, allowing a deeper recovery to 8600/05, but with this then expected to cap.”

“Should we see a sustained move below 6937, this would see these key long-term supports break, reinforcing the scenario we are in a more severe downtrend. We would then see support next at 6406, the 38.2% retracement of the entire 2008/2020 bull market, 16% below current levels.”