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S&P 500 is expected to see further consolidation beneath the top of the price gap from early June and downtrend from March at 3184/90, with key near-term support seen at 3119/13, the Credit Suisse analyst team informs.

Key quotes

“The S&P 500 remains in its high-level consolidation range following its expected rejection from our next flagged resistance from the top of the price gap from early June and potential downtrend from March at 3188/90 and the completion of a small bearish ‘reversal day’ on Tuesday is seen adding weight to our view that we should now look for a fresh move lower in the broader high-level consolidation range.”

“Support remains seen at the lower end of the price gap from Monday at 3130/25, then more importantly the 13-day average and 38.2% retracement of the most recent swing higher at 3119/13, with fresh buyers expected here. A closing break can reinforce the view we are set for a much lengthier consolidation phase, with support seen next at 3092.”

“Resistance is seen at 3174 initially, with 3184/90 expected to remain fairly for now. Above though can quickly reassert an upward bias for a look at the 3223/33 June highs.”

“The VIX continues to hold key support from its 200-day average and June low at 26.22/23.54 and we look for a fresh rise from here in line with our corrective view above, with resistance seen initially at 33.20.”