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S&P 500 has extended its recovery for a break above its near-term downtrend to inject an upward bias in what analysts at Credit Suisse still look to be a lengthier consolidation phase within the core bull trend. The index is also back above its now rising 13-day exponential average as well as its rising 63-day average, now at 3799.  

See –  S&P 500 Index: Bull market is intact but the correction has further to go – Morgan Stanley

Key quotes

“Whilst we suspect strength can extend further near-term, we remain of the view a lengthy consolidation/corrective phase is still likely and we are thus reluctant to materially chase either strength or weakness. Our base case remains though to view this consolidation as a temporary pause in the core underlying uptrend.”  

“The immediate risk is seen higher in the range with resistance seen at 3904 initially, then 3915. Above 3929/31 though is needed to suggest the consolidation phase may already be over for strength back to the 3950/51 high.”  

“Big picture, we continue to look for an eventual move above here to test 4070/75 next.”  

“Near-term support moves to 3852/47, with a break below 3819 needed to reinforce thoughts of a broader range with support then seen at the 63-day average at 3799. A close below here would warn of a retest of the 3723 low.”