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The S&P 500 spotlight remains on its record high and two-month channel top at 3984/91 and analysts at Credit Suisse suspect this again caps for now for a fresh pullback into the range. Big picture, they maintain a core bullish outlook for 4070/75.

Key quotes

“Whilst our broader outlook stays bullish for an eventual move to 4070/75, we suspect key resistance from the range highs and two-month channel top at 3984/91 again caps for now for a fresh pullback into the range.”

“Support remains at 3944/43 initially, then more importantly at the price gap from Friday morning at 3918/10. We look for this to now ideally hold to keep the immediate risk higher in the range. Below though would instead open the door to a retest of last week’s low and the 63-day average at 3854.”  

“Above 3991 in due course though should see the two-month range resolved to the topside with resistance then seen next at the psychological 4000 level ahead of Fibonacci resistance at 4008, which we would look to cap at first. Big picture though, we maintain our 4070/75 objective.”