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The S&P 500 has broken with ease through the top of the February “pandemic” price gap at 3328/38 and analysts at Credit Suisse look for this to clear the way for a challenge on the 3394 record high.

Key quotes

“S&P 500 strength has extended through our next flagged resistance/’objective’ and to be honest, what we had expected to be tougher initial resistance at the top of the February price gap at 3328/38.”

“Whilst we remain concerned the trend is getting overstretched this suggests we can see strength extend further yet with resistance seen next at 3373 and then and critically the 3394 record high, where we would expect to see at least some form of rejection, even if this proves only to be a brief pullback.”

“Support at 3318/17 needs to hold to keep the immediate risk higher. A break can see a deeper setback to 3307, then what we would look to be a better support from its 13-day average and lows from the beginning of the week at 3286/71.”