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The S&P 500 Index has rallied to test its 3394 record high. Despite poor momentum, analysts at Credit Suisse continue to see scope for a move to clear new record highs, with a break above trend resistance from June at 3405 seen exposing Fibonacci resistance of 3432/36. On the flip side, support is seen at 3370, then more importantly at 3343/41.

Key quotes

“The S&P 500 has rallied to test and briefly see a minor new record high above 3394, but with strength capped by trend resistance from early June, today seen at 3405. With RSI momentum still not yet confirming the new high we remain cautious, but continue to give the upside the benefit of the doubt for now.”

“Above 3394 and then the trend resistance at 3405 should mark a conclusive break higher, opening the door to what remains our ‘ideal’ resistance objective at Fibonacci projection resistance at 3432/36. We look for this to ideally cap and for a consolidation/corrective phase to emerge.”

“Support is seen at 3382 initially, then 3370, below which can see a move back to the 13-day average and trend channel support at 3343/41. A close below here is needed to suggest a correction lower is finally underway, with 3326 though still needing to be removed to establish a small top.”