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Economists at Credit Suisse maintain a broader bullish outlook for a move to 3900. With further layers of resistance seen here and stretching up to 3930, the bias remains for 3900/3930 to cap the S&P 500 Index at first and for a potentially lengthier consolidation phase to emerge.

See – S&P 500 Index: Recent comparisons to the tech bubble are misplaced – Morgan Stanley

Key quotes

“S&P 500 has pushed marginally to a new record high, neutralising its bearish ‘reversal week’ and we look for the uptrend to directly extend to our long-held 3900 ‘measured triangle objective’. With further layers of resistance seen here and stretching up to 3930, including trend resistance from last November and a cluster of Fibonacci projection levels our bias remains for a cap in this 3900/3930 zone and for a potentially lengthier consolidation/correction phase to then unfold.” 

“Big picture, we remain of the view that this is likely to be a consolidation phase still within the broader uptrend. Indeed, a direct break above 3930 would end thoughts of consolidation and see the trend stay directly higher, with resistance seen next at 3950/60 and eventually 4070/75.” 

“Support is seen at 3860 initially, then 3837/30, which needs to hold to keep the immediate risk higher. Below can raise the prospect of a ‘false’ break to new highs and a retreat back to the 13-day average at 3809, with scope for price/gap support at 3792/73.”