S&P 500 has surged higher again after completing its “head & shoulders” base above the mid-September highs at 3429/44 and analysts at Credit Suisse look for a resumption of the core uptrend back to the 3588 high and then for new record highs.
Key quotes
“Another strong move higher after the completion of its ‘head & shoulders’ base above key resistance from the mid-September highs and 61.8% retracement of the fall from September at 3429/44, with the market gapping higher yet again. Given the strength of the past four days, a knee-jerk pullback should be allowed for, but dips will stay seen as corrective and we maintain our bullish outlook and look for strength back to not only the 3588 record high but beyond in due course.”
“We see resistance above the high of yesterday at 3565 next and eventually the 3588 high, also essentially the upper end of its ‘typical’ extreme (15% above the 200-day average). Whilst this should clearly be respected we look for a break in due course with the ‘measured base objective’ at 3653.”
“Support moves to 3525 initially, then 3500, with the lower end of the price gap from yesterday at 3482/77 now ideally holding to keep the immediate risk higher. A break can see a deeper pullback to 3458/47, but with fresh buyers expected here.”
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