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S&P 500 has completed a bearish “reversal day” which is seen reinforcing the view the market is now at/near an “extreme” following a series of “red flags” and analysts at Credit Suisse remain alert to a consolidation/corrective phase, ideally from the 4200 neighborhood.  

See –  S&P 500 Index: Expectations for earnings consistent with rotation resuming soon – CE

A small bearish “reversal day” is seen reinforcing the view the market is now at/near its “typical” extreme  

“A small bearish ‘reversal day'” for the S&P 500 as the market shows tentative signs of acknowledging its ‘typical’ upside extreme condition (the index for example is now more than 15% above its 200-day average). With Volume/OnBalanceVolume not confirming the new highs we maintain our view we are getting close to a peak to this phase for the emergence of a consolidation/corrective phase.  

“Support at 4118/14 holding can maintain an immediate upside bias for now still but with a break above 4152 needed to neutralize yesterday’s bearish session for a move to 4175/79 and ideally our 4200 Q2 objective. Our bias remains to look for more concerted signs of a top here.”

“Below 4118/14   would warn of a minor top to reinforce the bearish ‘reversal day’ for a fall back to 4096/86, potentially 4068, with more important support seen starting at 4038/34.”